UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C.  20549

FORM 10 QSB


Quarterly Report Pursuant to Section 13 or 15(d) of the 
Securities Exchange Act of 1934

For the quarterly period ended	                  March 31, 1998

Commission file number   0-12227   

                        Sutron Corporation
(Exact name of registrant as specified in its charter.)

        	Virginia				54-1006352
(State or other jurisdiction of        (I.R.S. Employer Identification No.)
incorporation organization)

21300 Ridgetop Circle, Sterling Virginia     	20166
(Address of principal executive offices)       	(Zip  Code)

(703) 406-2800
(Registrant's telephone number, including area code)
	
   Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 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  	[ 	]

   Indicate the number of shares outstanding of each of the issuer's classes 
of common stock, as of the latest practical date:

   Common Stock, $.01 Par Value - 4,225,851 shares of as of March 31, 1998.

<PAGE>
<TABLE>
                     PART I. - FINANCIAL INFORMATION
                          
                                                                                                  SUTRON CORPORATION
                                                                                                       BALANCE SHEETS
<CAPTION>
                                                                                                               (Unaudited)
                                    					March 31,     	December 31,
                                         	 				1998	         	1997
                                       					___________     ___________
<S>                                   					 <C>		<C>
Assets
Current Assets:
 Cash                                 					    $5,088	$168,548
 Accounts receivables       			             		    1,089,608	1,804,525
 Cost and estimated earnings in excess
    of billings						   205,444	402,523
 Inventory	                            				1,754,879	1,528,802
 Other	                                    				     122,251	71,670
                                       					___________     ___________
Total Current Asset	                    			3,177,271	3,976,068
				
 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,176,347
  and $1,154,351						      365,086	184,551
				
Investment                                 				        493,118	493,118
				
Deposits and Other Assets                 			         53,478	38,746
                                       					___________	__________
TOTAL ASSETS                        				  $4,088,954	$4,692,483

</TABLE>
<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     				<C>		<C>
Current Liabilities:				
 Accounts payable	                    			$  667,898	$610,568
 Accrued payroll						    128,158	80,521
 Accrued expenses                        				    443,365	415,021
 Accrued income taxes					    18,326	110,359
 Contract billings on contracts in progress in
  excess of costs and estimated earnings			     169,238	169,238
 Estimated losses on
  uncompleted contracts                       			        13,976	24,902
 Line of credit		                        			                0	573,171
Shareholder loans payable	             		 		      55,000	80,000
Installment notes payable - current portion			       6,277	6,657
 Term notes payable- current portion                    		    171,504	171,504
							_________	__________
Total Current Liabilities                				   1,674,121	2,241,941
				
Long-term liabilities:		
 Installment note payable					                 0	253
 Term notes payable                       				      57,559	100,435
							_________	__________
	Total liabilities					  1,731,680	2,342,629
				
Stockholders' Equity:				
 Common stock, $.01 par value,				          42,259	42,259
 Additional paid in capital	             				     2,282,866	2,282,866
 Retained Earnings                  	 			           32,528	24,729
                                       					 ___________	___________
Total Stockholders' Equity                			      2,357,653	2,349,854

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    			$      4,088,954	    $ 4,692,483
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			March 31,
                                          			        1998	     1997
                                        			___________	___________
<S>                                    		 <C>		<C>
Revenues                              		 $  1,809,749	$     2,672,141
				
Cost of Goods Sold			      1,108,488	       1,581,736
                                    			___________	__________
Gross Profit                              		         701,261	        1,090,405
				
Research and Development Expenses	       202,240	         215,598
				
Selling, General, and				
 Administrative Expenses                  	        480,951	        447,279
                                       			___________	___________
Income (Loss) from Operations		      18,070	427,528

Other Expense                               			7,219	                    0

Interest Expense                            		          13,802	           38,194
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			        (2,951)	      389,334
				
Provisions for Income Taxes		         (10,750)	152,000
                                 			____________	___________
Net Income                           		$      7,799	$     237,334
				
Net Income per Common Share        	              $.00	$             $ .06
				
Weighted Average Number
 of Common Shares                       	 	       4,225,851	      4,225,851
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                                                                      SUTRON CORPORTION
                                                            STATEMENTS OF CASH FLOWS
                                                                              (Unaudited)
<CAPTION>
                                        			      Three Months Ended
                                                			March 31,
                                             		1998    	       	1997
                                           		___________       ___________
<S>                                        		<C>		<C>  
Cash Flows from Operating Activities:			
  Net income (loss)                       		$         7,799	$  237,334
 
  Depreciation and amortization                	         21,996	25,044
  Loss on sale of assets				    0	1,961	
  (Increase) Decrease in: 			
    Accounts receivables                      	        714,917	(310,885)
    Costs and estimated earnings in
      excess of contract billings             	        197,079	(199,814)
    Inventory                                 		      (226,077)	277,330
    Other current assets                       	        (65,313)	(46,551)
			
  Increase (Decrease) in:			
    Accounts payable                          	          57,330	(95,787)
    Accrued expenses			          75,981	1,727
    Accrued income taxes			        (92,033)	126,650
    Estimated losses on uncompleted
     contracts                                 		        (10,926)	            0
                                          			__________	_______
Net Cash Provided by Operating Activities  	        680,753	      17,009
			
Cash Flows from Investing Activities:			
  Proceeds from sale of assets		                 0	      10,500
  Capital expenditures                         	      (202,534)	       (33,629)
Net Cash Used in Investing Activities	      (202,534)	       (23,129)
			
Cash Flows from Financing Activities:			
Payments on line of credit                  	       (573,171)	               0
  Proceeds from advance on line of credit	                   0	      75,000
  Payments on Term notes payable              	         (42,876)	    (25,000)
  Payments on Installment notes payable	              (633)	    (13,166)
  Payments on shareholder notes		         (25,000)	     0
                                         			___________	__________
Net Cash (Used) by Financing Activities	       (641,680)	         36,834

Net Increase (Decrease) in Cash                  	         163,461	          30,714
Cash and Cash Equivalents, January 1	         168,549	          78,970
                                             		___________	__________
Cash and Cash Equivalents, March 31	$           5,088	$       109,684
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>

SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

March 31, 1998


1.  Basis of Presentation

The accompanying financial statements, which should be read in conjunction 
with the financial statements of Sutron Corporation ("the Company") included
in the 1997 Annual Report filed on Form 10-KSB, are unaudited but have
 been prepared in the ordinary course of business for the purpose of providing
information with respect to the interim period.  The Company believes that all 
adjustments (none of which were other than normal recurring accruals) 
necessary for a fair presentation for such periods have been included.

2.  Earnings Per Share

The Company has adopted Statement of Financial Accounting 
Standards ("SFAS") No. 128 which establishes standards for 
computing and presenting earnings per share (EPS) for entities
 with publicly held common stock.  The standard requires 
presentation  of two categories of earning per share, basic EPS
 and diluted EPS.  Basic EPS excludes dilution and is computed
by dividing income available to common stockholders by the 
weighted-average number of common shares outstanding for 
the year.  Diluted EPS reflects the potential dilution that could 
occur if securities or other contracts to issue common stock were 
exercised or converted into common stock or resulted in the
 issuance of common stock that then shared in the earnings 
of the Company.

<PAGE>
 
                          MANAGEMENT'S DISCUSSION AND ANALYSIS
                                OF FINANCIAL CONDITION
                               AND RESULTS OF OPERATIONS

Results of Operations

Net Revenues.  The Company's revenues for the three months
 ended March 31, 1998 decreased 32% to $1,809,749 from 
revenues of $2,672,141 in 1997 due to both decreased 
 product sales and decreased sales of services/systems.  
The decrease in product sales is primarily a result 
of decreased sales of the 8200, 8210 and 8400 products.  A 
strong backlog of these products was carried over into 1997. 
Services revenues decreased as a result of overhead tasks relating
 to new application software development being given priority 
over direct work during the first quarter.

Gross Profit.  Gross profit for 1998 decreased to $701,261 from
 $1,090,405 in 1997.  Gross margin as a percentage of revenues 
for 1998 decreased to 39% as compared to 41% in 1997.  The 
decrease in the Company's gross margin as a percentage of sales
 is attributed to reduced sales volume and to the Company 
carrying certain contracts at no profit due to costs being in excess
of revenues.  A loss provision totaling $24,902 was accrued for
these contracts at December 31, 1997.

Selling, General And Administrative.  Selling, general 
and administrative expenses increased to $480,951 in 1998 
from $447,279 in 1997, an increase of $33,673.  These expenses
 increased as a percentage of revenues to 26% in 1998 from
 18% in 1997.  Both general and administrative expenses and
 selling expenses increased due to increased labor charges.

Research And Development.  Research and development expenses
 decreased 6% to $202,240 in 1998 from $215,598 in 1997, a
 decrease of $26,224.  The Company is using subcontractors
 to assist in the development of new products and incurred
 significant costs in the prior year.  The current work on new 
products is being done primarily in house as the subcontractors 
have completed the majority of their tasks.  One new R&D 
employee was added in March 1998.

Interest Expenses.  Interest expenses decreased to $13,802 in 1998
 from $38,194 in 1997 as a result of the company's reduced borrowings
 on the line of credit due to strong profits in 1996 and 1997.

The Company's backlog of orders at March 31, 1998 was 
$1,595,375.  The Company anticipates that 95% of its 
March backlog will be shipped in 1998.

Liquidity and Capital Resources

Cash and cash equivalents decreased to $5,088 at March 31, 1998, 
compared to $168,549 at December 31, 1997.

The ratio of current assets to current liabilities was 1.9 as of 
March 31, 1998, compared to 1.8 as of December 31, 1997.  Working 
capital decreased $230,979 to $1,503,150 at the end of the first
 quarter of fiscal 1997 compared to $1,734,129 at the end of fiscal 1997.

In February 1998, the Corporation entered into a contract to sell 4.2
 acres of land acquired in 1986.  The land was originally intended to 
be the site of a headquarters and manufacturing facility.  The contract 
calls for a purchase price of $700,000 and the buyer has a study period 
and a right to cancel.  Settlement on the property is expected in the
 third quarter of 1998.  

Management believes internally generated funds and short-term
 borrowings on our existing credit line will provide adequate resources
 for supporting operations during the remainder of fiscal 1998.

Forward-Looking Statements

The Company believes that this report contains forward-looking 
statements within the meaning of Section 27A of the Securities Act of 1933, 
as amended, and Section 21E of the Securities Exchange Act of 1934, as 
amended, that are subject to certain risks and uncertainties.  Forward-looking 
statements represent the Company's expectations or beliefs concerning future
 events, including the following: any statements regarding future sales and
 gross profit percentages, any statements regarding the continuation of
 historical trends, any statements regarding the sufficiency of the Company's
 cash balances and cash generated from operating and financing activities for
 the Company's future liquidity and capital resource needs, any statements 
regarding the effect of regulatory changes, the success of development and
 enhancement of the Company's products, the adequacy of the Company's
 facilities, potential acquisitions, and any statements regarding the future of 
the instrumentation industry and the various parts of the instrumentation 
markets in which the Company conducts its business.  The Company cautions 
that any forward-looking statements made by the Company in this report
 or in other announcements made by the Company are further qualified by
 important factors that could cause actual results to differ materially from
 those in the forward-looking statements, including, without limitations, the
 factors set forth in to the Company's report on Form 10K for the fiscal 
year ended December 31, 1997.

<PAGE>

PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

B. Reports on Form 8-K
   
   No reports have been filed on Form 8-K during this quarter.

<PAGE>

                            SUTRON CORPORATION
 
                               SIGNATURES
 
	Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                      			Sutron Corporation    
                                			     (Registrant)



May 15, 1998                             Raul S. McQuivey  
Date                                  Raul S. McQuviey
                                         Principal Executive Officer

May 15, 1998                             Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer