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     June 30, 2000

[   ]    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)

                                 (631) 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 August 14, 2000, there were outstanding  1,253,631 shares of Common Stock,
$.01 par value.

Transitional Small Business Disclosure Format (check one);

                           Yes                       No       X


<PAGE>


                           TELEBYTE, INC. & SUBSIDIARY

                                      INDEX

Part I            Financial Information

         Item 1.           Consolidated Financial Statements

                                  Consolidated Balance Sheet
                                  June 30, 2000 (Unaudited)

                                  Consolidated Statements of Earnings
                                  Three and six months ended
                                  June 30, 2000 and 1999 (Unaudited)

                                  Consolidated Statement of Shareholders' Equity
                                  Six months ended
                                  June 30, 2000 (Unaudited)

                                  Consolidated Statements of Cash Flows
                                  Six months ended
                                  June 30, 2000 and 1999 (Unaudited)

                                  Notes to Condensed Consolidated Financial
                                  Statements (Unaudited)

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

Part II           Other Information


<PAGE>


Part I        Financial Information
Item 1.       Financial Statements

                                  TELEBYTE, INC. & SUBSIDIARY
                                  CONSOLIDATED BALANCE SHEET
                                       JUNE 30, 2000
                                       (Unaudited)

ASSETS

CURRENT ASSETS

              Cash and cash equivalents                 $   697,841
              Accounts receivable, less

                allowance for doubtful accounts             790,966
              Inventory                                   1,494,679
              Prepaid expenses                               51,177
              Deferred income taxes                         135,000
                                                     ---------------
              TOTAL CURRENT ASSETS                        3,169,663

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization               1,107,404

OTHER ASSETS                                                324,202
                                                     ----------------
                                                       $  4,601,269

                                                     ================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
              Accounts payable                          $   278,462
              Accrued expenses                              119,441
              Income taxes payable                          118,628
              Current maturities of long-term debt           73,571
                                                      --------------
              TOTAL CURRENT LIABILITIES                     590,102

LONG-TERM DEBT, less current maturities                   1,008,852

DEFERRED INCOME TAXES                                       195,000

SHAREHOLDERS' EQUITY
              Common stock - $.01 par value;
                 9,000,000 shares authorized;
                   1,253,631 shares issued and
                         outstanding                         12,536
              Capital in excess of par value              1,781,672
              Retained earnings                           1,013,107
                                                     ---------------
                                                          2,807,315

                                                     ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY             $  4,601,269
                                                     ===============


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




<PAGE>




                           TELEBYTE, INC. & SUBSIDIARY
                       CONSOLIDATED STATEMENTS OF EARNINGS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                          Three Months                                       Six Months
                                                         Ended June 30,                                    Ended June 30,
                                           -----------------------------------------------------------------------------------------

                                                   2000                  1999                      2000                     1999
                                                ------------------------------------------------------------------------------------
<S>                                                <C>                    <C>                       <C>                     <C>
NET SALES                                      $1,570,600             $1,362,966                 $3,252,905              $2,728,246

COST OF SALES                                     695,498                620,941                  1,496,294               1,299,408
                                                ------------------------------------------------------------------------------------
GROSS PROFIT                                      875,102                742,025                  1,756,611               1,428,838
                                                ------------------------------------------------------------------------------------

OPERATING EXPENSES
      Selling, general and administrative         442,292                504,955                    909,760                 935,640
      Research and development                    130,128                149,768                    261,939                 278,887
                                                ------------------------------------------------------------------------------------
                                                  572,420                654,723                  1,171,699               1,214,527
                                                ------------------------------------------------------------------------------------
Operating Income                                  302,682                 87,302                    584,912                 214,311
                                                ------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE)
    Rental Income                                  12,049                 12,049                     24,098                  24,098
    Interest Income                                 5,814                    313                     10,629                   4,995
    Interest Expense                              (22,595)               (30,525)                   (49,231)                (60,889)
                                                ------------------------------------------------------------------------------------

       Earnings before income taxes               297,950                 69,139                    570,408                 182,515

Provision for income taxes                        115,000                 25,000                    220,500                  70,000
                                                ------------------------------------------------------------------------------------

NET EARNINGS                                     $182,950                $44,139                   $349,908                $112,515
                                                ====================================================================================
Earnings per common share:
      Basic                                     $    0.15              $    0.04                  $    0.28               $    0.09
                                                ====================================================================================
      Diluted                                   $    0.12              $    0.03                  $    0.22               $    0.09
                                                ====================================================================================
Shares used in computing earnings per common share:

      Basic                                     1,253,631              1,248,631                  1,251,780               1,275,911
                                                ====================================================================================
      Diluted                                   1,572,611              1,276,061                  1,604,575               1,303,342
                                                ====================================================================================

</TABLE>

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


<PAGE>


                           TELEBYTE, INC. & SUBSIDIARY
                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                         SIX MONTHS ENDED JUNE 30, 2000
                                   (Unaudited)


<TABLE>
<CAPTION>
                                   Number of                       Capital in
                                    shares           Common         excess of         Retained
                                    issued            stock         par value         earnings            Total
<S>                                     <C>             <C>              <C>              <C>                 <C>
Balance at January 1, 2000         1,248,631       $ 12,486       $ 1,740,472        $ 663,199        $  2,416,157

Common stock issued for purchase       5,000             50            41,200                               41,250
     of intangibles

Net earnings                                                                           349,908             349,908
                                  -----------     ----------     -------------      -----------       -------------

Balance at June 30, 2000           1,253,631        $ 12,536      $ 1,781,672      $ 1,013,107         $ 2,807,315
                                  ===========     ==========     =============      ===========       =============



</TABLE>

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

<PAGE>


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

<TABLE>
<CAPTION>                                                                              Six Months
                                                                                     Ended June 30,
                                                                            -------------------------------
                                                                               2000                 1999
                                                                            --------------------------------
<S>                                                                             <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net earnings                                                            $349,908           $ 12,515
     Adjustments to reconcile net earnings to
        net cash provided by operating activities:
              Depreciation and amortization                                   137,992             75,388
              Decrease (increase) in operating assets:
                Accounts receivable                                            67,951           (117,195)
                Inventories                                                    24,598           (194,213)
                Prepaid expenses and other                                     15,287             (7,436)
                Increase (decrease) in operating liabilities:
                Accounts payable                                                5,946             45,922
                Accrued expenses and taxes                                    (90,893)            96,728
                                                                            -------------------------------

      Net cash provided by operating activities                                510,789             11,709
                                                                            -------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to property and equipment                                      (50,179)           (42,292)
     Purchase of intangibles                                                 (110,000)              -
     Cost of non-compete agreement                                              -               (203,124)
                                                                            --------------------------------

      Net cash used in investing activities                                  (160,179)          (245,416)
                                                                            ---------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments under mortgage obligation                             (33,690)           (30,126)
     Net borrowings under debt obligations                                     10,394            386,983
     Purchase of treasury stock                                                  -              (927,430)
     Proceeds from exercise of stock options                                     -                 3,950
                                                                            ---------------------------------

      Net cash used in financing activities                                   (23,296)          (566,623)
                                                                            ----------------------------------

      Net increase (decrease) in cash and cash equivalents                    327,314           (800,330)

Cash and cash equivalents at beginning of period                              370,527            919,630
                                                                            ----------------------------------

Cash and cash equivalents at end of period                                  $ 697,841          $ 119,300
                                                                            ==================================

Non cash financing activities
     Issuance of common stock and note payable for purchase of
          intangibles                                                $         60,825


</TABLE>
The accompanying notes are an integral part of these financial statements.




<PAGE>




                           TELEBYTE, INC. & SUBSIDIARY

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

1.       CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The consolidated  balance sheet as of June 30, 2000, the consolidated  statement
of earnings,  stockholders'  equity and cash flows for the six-month period then
ended have been prepared by us 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, 2000 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 our Annual  Report to  Shareholders  for the fiscal year ended  December  31,
1999.  The  results of  operations  for the period  ended June 30,  2000 are not
necessarily indicative of the operating results for the full year.

2.       EARNINGS PER SHARE

The numbers of shares used in the Company's basic and diluted earnings per share
computations are as follows:

<TABLE>
<CAPTION>
                                                                         Three Months                  Six Months
                                                                        Ended June 30,               Ended June 30,
                                                                 ----------------------------------------------------------
                                                                      2000           1999          2000          1999
                                                                 ----------------------------------------------------------
<S>                                                                       <C>            <C>            <C>          <C>
   for basic earnings per share                                        1,253,631     1,248,631     1,251,780     1,275,912

Common stock equivalents for stock options                               318,980        27,430       352,795        27,430

Weighted average common shares outstanding
   for diluted earnings per share                                      1,572,611     1,276,061     1,604,575     1,303,342


</TABLE>


<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 and under the caption "Risk Factors" in our
Annual  Report on Form 10-K for the year ended  December 31,  1999,  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 us
which  attempt to advise  interested  parties of the  factors  which  affect our
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 our fiscal year, which ends December 31.

RESULTS OF OPERATIONS

Sales during the second  quarter ended June 30, 2000 increased 15% to $1,570,600
compared to sales of  $1,362,966  for the same period in 1999.  The  increase in
sales was  primarily  due to an increase in sales of our DSL Test  Equipment and
Short haul modem product lines.

Cost of sales for the second  quarter of $695,498 (or 44.3% of sales)  increased
compared to the $620,941 (or 45.6% of sales) during the same period in 1999. The
increase in our profit  margin  percentage  was  primarily a function of product
mix.

Selling,  general and  administrative  costs for the second  quarter of $442,292
decreased  by $62,663  from  $504,955  during the  second  quarter of 1999.  The
decrease  during the second quarter was due primarily to our change in marketing
strategy.  The Company saw no need to print and distribute a new product catalog
during  this  quarter,  as was done in the  second  quarter of 1999 at a cost of
approximately $65,000.  However, the Company expects to print and distribute its
next product catalog during the first half of 2001.

The  Company's  marketing  focus has shifted  toward a stronger  presence on the
Internet,  at trade  shows  and at  industry  and  standards  organizations.  In
particular,  the Company incorporated a "live" net agent capability feature into
its web site.  This  allows a  Company's  sales  representative  to  respond  to
customer  inquiries  through an instant messaging feature in real time. In terms
of timely  responsiveness the Company considers it a great improvement over both
telephone and e-mail  interaction.  The Company initiated the translation of the
product  description web pages into Spanish.  This is a first step to a complete
"internationalization"  of its web site. The Company participated in major trade
shows for its  Digital  Subscriber  Line  products.  Such trade  shows were both
within and outside of the United  States.  The Company became active in industry
and standards groups  associated with its products such as the DSL Forum and the
VDSL Coalition.

Research and development  expenses for the second quarter of $130,128  decreased
by $19,640  from  $149,768  during the same  quarter in 1999.  During the second
quarter,  we continued the development of our Universal Serial Bus (USB) product
line and expect to introduce our first USB products during the fourth quarter of
2000.  The USB products that should be introduced in the fourth  quarter of 2000
include a USB-to-EIA 232 converter,  a USB-to-RS 422 converter,  a USB-to-RS 485
converter and a USB-to-Fiber converter. The Company continued the development of
a multi-line wire line simulator,  which can simulate up to 16 local loops up to
20,500 feet each. We expect to release this new product to production during the
third quarter of 2000.

Interest  income  increased to $5,814 during the second quarter of 2000 compared
to $313 for the same period in 1999.  This  increase in interest  income was due
primarily  to higher  levels of cash on  deposit.  During the second  quarter of
2000,  we had rental  income of $12,049,  which was in line with the  comparable
quarter of 1999.

The effective tax rate in first quarter of 2000 was 38.6%,  compared with 36.2 %
in same quarter in 1999.

The net earnings of $182,950 or $.12 diluted per share for the second quarter of
2000  increased 315% compared to the net earnings of $44,139 or $.03 diluted per
share in the same quarter in 1999. The increase in  profitability  is attributed
to the increase in sales during the second  quarter of 2000 and the reduction of
overall expenses resulting from the  re-organization of the Company initiated in
January of 1999.

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities for the six months ended June 30, 2000
was  $510,789  compared  to net cash  provided  of $11,709 in the same period of
1999.  This change was due to an  increase  in net  earnings  and  decreases  in
accounts receivable, inventories and prepaid expenses.

Working  capital  increased  as of June  30,  2000 by  $312,604  to  $2,579,561,
compared with  $2,266,957  from December 31, 1999.  The current ratio as of June
30, 2000 increased to 5.4:1 compared to 4.4:1 as of December 31, 1999.

We have an agreement with a financial institution, which provides us with a line
of  credit of up to  $500,000  based on our  eligible  accounts  receivable  and
purchased components and materials and finished goods inventories, as defined in
the agreement.  Further, the agreement contains certain financial covenants that
require  us to  maintain  a minimum  level of  tangible  net  worth  and  places
limitations on the ratio of our total debt to our 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%.  There was no outstanding  indebtedness
under this line of credit as of June 30, 2000.

In January 1999, we secured an additional reducing revolving line of credit from
the same  institution  that  provides for initial  borrowings up to a maximum of
$1,000,000.  Availability  under the reducing revolving line of credit decreases
by  approximately  $11,900  per  month,  and  the  line  expires  January  2006.
Availability  under  this  line at June  30,  2000 was  approximately  $565,280.
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 $232,335
at June 30, 2000.

We  believe  that  cash  generated  by our  operations,  current  cash  and cash
equivalents,  and the lines of credit should supply sufficient cash resources to
meet our cash needs for the next 12 months.

<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

         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
         Chairman of the Board
         (Principal Executive Officer)


By:      ___________\s\________________
         Michael Breneisen
         President

         (Principal Financial and Accounting Officer)


Date:    August 14, 2000