United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
For the quarter ended  September 30, 1996

[ ] Transition  Report Under Section 13 or 15(d) of the Securities  Exchange Act
of 1934
For the transition period from                        to                        

Commission File Number:             0-11883                            

                           TELEBYTE TECHNOLOGY, INC.          
         (Exact name of registrant as specified in its charter)

Nevada                
                                               11-2510138
(State or other jurisdiction of                               (IRS Employer
incorporation or organization)                               Identification No.)

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

Registrant's Telephone Number, including Area Code:               (516) 423-3232

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act  during the past 12 months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been subject to such filing requirements for the past 90 days.
                           Yes      X                No                

As of November 8, 1996 there were outstanding  1,481,766 shares of Common Stock,
$.01 par value.
Transitional Small Business Disclosure Format (check one);

                           Yes                       No       X        

                        
<PAGE>


                            TELEBYTE TECHNOLOGY, INC.

                                      INDEX

Part I            Financial Information

         Item 1.           Financial Statements
 
                           Balance Sheet
                           September 30, 1996 (Unaudited)

                           Statements of  Earnings
                           Three and nine  months ended
                           September 30, 1996 and 1995 (Unaudited)

                           Statements of Cash Flows
                           Nine months ended
                           September 30, 1996 and 1995 (Unaudited)

                           Condensed Notes to Financial
                           Statements (Unaudited)

         Item 2.  Management's Discussion and Analysis of
                           Financial Condition and Results of Operation.



Part II  Other Information







<PAGE>





Part I   Financial Information

Item 1. Financial Statements

                            TELEBYTE TECHNOLOGY, INC.
                                  BALANCE SHEET

                                SEPTEMBER 30,1996
                                   (unaudited)

ASSETS

CURRENT ASSETS
             Cash & cash equivalents                    $       446,105
             Accounts receivable, less
               allowances for doubtful accounts                 665,513
             Inventory                                        1,081,111
             Prepaid expenses                                   118,658
             Deferred Income Taxes                               80,000
                                                    --------------------
             TOTAL CURRENT ASSETS                             2,391,387

             PROPERTY, PLANT AND EQUIPMENT, less
               accumulated depreciation and amortization      1,169,603

             OTHER ASSETS                                        44,402
                                                    --------------------
                                                         $    3,605,392
                                                    ====================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
             Accounts payable                           $       203,064
             Accrued expenses                                   120,038
             Current maturities of long-term debt                46,345
                                                    --------------------
             TOTAL CURRENT LIABILITIES                          369,447

LONG-TERM DEBT, less current maturities                       1,007,281

SHAREHOLDERS' EQUITY
             Common stock, par value $.01 per share
               1,636,566 issued and 1,481,766 outstanding        16,366
             Capital in excess of par value                   2,751,988
             Accumulated deficit                               (438,597)
             Less treasury stock, at cost, (154,800 shares)    (101,093)
                                                    --------------------
                                                              2,228,664
                                                    --------------------
TOTAL LIABILITIES AND SHAREHOLDER'S' EQUITY              $    3,605,392
                                                    ====================
    The accompanying notes are an integral part of this financial statement.



<PAGE>


                            TELEBYTE TECHNOLOGY, INC.
                             STATEMENTS OF EARNINGS
                                   (Unaudited)

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

                                  1996        1995         1996         1995
                              -----------  ----------   ----------  ------------

NET SALES                     $ 1,265,191  $  959,169  $ 3,169,648  $  2,854,691

COST OF SALES                     601,538     437,706    1,462,684     1,256,402
                              -----------  ----------  -----------  ------------
GROSS PROFIT                      663,653     521,463    1,706,964     1,598,289
                              -----------  ----------  -----------  ------------

OPERATING EXPENSES
  Research and development         53,213      65,860      177,625       209,919
  Selling, G&A                    419,524     386,741    1,333,726     1,228,554
                              -----------   ---------  -----------  ------------
                                  472,737     452,601    1,511,351     1,438,473
                              -----------   ---------  -----------  ------------

Operating Income                  190,916      68,862      195,613       159,816
                              -----------   ---------  -----------  ------------

OTHER INCOME (EXPENSE)
    Rental Income                  12,048      12,048       36,146        36,146
    Interest Income                 3,088       4,838        9,207        14,400
    Interest Expense              (28,444)    (29,996)     (86,178)     (86,897)
                              ------------  ----------  ----------- ------------

     Income before income taxes   177,608      55,752      154,788       123,465

Provision for income taxes          2,500       1,700        2,500         4,000
                              ------------  ----------  -----------  -----------
      NET INCOME              $   175,108  $   54,052   $  152,288    $  119,465
                              ============  ==========  ===========  ===========

      NET INCOME PER SHARE    $      0.12  $     0.04   $     0.10    $     0.08
                              ============  ==========  ===========  ===========

Average number of shares        1,489,932   1,511,566    1,492,688     1,511,566
                             =============  ==========  ===========  ===========

     The accompanying notes are an integral part of this financial statement



<PAGE>


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

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

                                                         1996             1995
                                                      ---------       ----------
CASH FLOWS FROM OPERATING ACTIVITIES

Net Income                                           $  152,288    $    119,465
Adjustments to reconcile net income to
  net cash used in operating activities:
             Depreciation and amortization               65,475          38,474
             Decrease (increase) in assets:
               Accounts receivable                     (200,525)        (55,016)
               Inventories                             (117,207)         89,345
               Prepaid expenses and other               (28,454)        108,406
               Increase (decrease)  in liabilities:
               Accounts payable                          82,780         (64,504)
               Accrued expenses                         (28,168)         28,403
                                                     -----------      ----------
Net cash provided by (used in)
operating activities                                    (73,811)        264,573
                                                     -----------      ----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Cash was paid for:
             Property and equipment                     (36,616)        (65,554)
                                                      ----------      ----------

Net cash used in investing activities                   (36,616)        (65,554)
                                                      -----------     ----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Cash received from:
             Financing capital assets                                    26,257
 Cash was used for:
             Purchase Treasury Stock                    (15,148)
             Principal payments of long-term debt       (37,787)        (41,300)
                                                      -----------     ----------
Net cash used in financing activities                   (52,935)        (15,043)
                                                      -----------     ----------
Net increase (decrease) in cash and
  cash equivalents                                     (163,362)        183,976
Cash and cash equivalents at
  beginning of period                                   609,467         439,377
                                                      -----------     ----------
Cash and cash equivalents at
  end of period                                      $  446,105       $  623,353
                                                     ============     ==========

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




<PAGE>

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

1.       CONDENSED FINANCIAL STATEMENTS

The balance  sheet as of September  30, 1996,  the statement of earnings for the
three and nine months then ended and the  statements  of cash flows for the nine
month period then ended have been prepared by the Company  without audit. In the
opinion of management,  all  adjustments  (which  include only normal  recurring
accrual adjustments) necessary to present fairly the financial position, results
of  operations  and cash flows at  September  30,  1996 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,
1995. The results of operations for the period ended  September 30, 1996 are not
necessarily indicative of the operating results for the full year.




<PAGE>


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


RESULTS OF OPERATIONS


Sales for the third quarter ended September 30, 1996 increased 32% to $1,265,191
compared  to sales of $  959,169  for the same  period  in 1995,  and sales of $
965,056 for the second quarter of 1996. The higher sales level can be attributed
to the success of increased promotional activities during the first half of 1996
and the shipment of a $170,000 order of interface converters which was disclosed
at the  Companys  annual  meeting  in July  1996.

Cost of sales for the third  quarter  of  $601,538  or 47.5% of sales  increased
compared to $437,706 or 45.6% of sales during the same period in 1995 and 44% of
sales for the second quarter of 1996. The decrease in the Companys gross profit
margin was primarily a function of product mix.

Selling,  general and administrative  expenses of $419,524 increased compared to
$386,741,  however, as a percentage of sales SG&A decreased to 33.2% as compared
to 40.3% for the same period in 1995 and  decreased  from $459,114 in the second
quarter  of  1996,  a  9%  decrease.  The  Company  continues  to  increase  its
promotional activities in an effort to boost sales and as such has embarked on a
sales  campaign based upon increased  catalog  distribution.  In prior years the
Company distributed approximately 125,000 catalogs. Through November 8, 1996 the
Company has  distributed  approximately  260,000  catalogs with 100,000 of these
having been mailed at the beginning of the fourth  quarter.  The Company expects
to expand this sales program in 1997.

Research and development  expenses  decreased to $53,213 compared to $65,860 for
the third quarter of 1995 and $65,009 in the second quarter of 1996.  During the
third  quarter,  the Company  continued  development  of several  advanced  data
communications  products.  The first of these, an HDSL (High Datarate Subscriber
line) modem is expected to be introduced in the fourth quarter of 1996.


Interest  income  decreased to $3,088 and $9,207 for three and nine months ended
September 30, 1996,  compared to $4,838 and $14,400 for the  comparable  periods
ended  September  30,  1995.  The decrease  reflects  lower levels of short term
investments  of cash  equivalents.  Net income of $175,108 for the third quarter
increased compared to $54,052 for the third quarter of 1995. The increase can be
primarily attributed to higher sales during the third quarter.



<PAGE>



LIQUIDITY AND CAPITAL RESOURCES

Net cash used in operating  activities  of $163,362  was used  primarily to fund
increased  levels of inventory and accounts  receivable  due to increased  sales
revenues.  Working  capital  increased to  $2,021,940  at September 30, 1996, an
increase of $130,106 from  December 31 1995.  The current ratio at September 30,
1996  decreased  to 6.5 to 1 compared  to 7.0 to 1 at  December  31,  1995.  The
Company  maintains a $1,000,000 line of credit with Merrill Lynch effective July
1, 1996 for one year. The Company has no amounts  outstanding  under the line of
credit at this time. The Company  considers it's working  capital to be adequate
to fund presently foreseeable working capital requirements.





<PAGE>





PART II -- OTHER INFORMATION


Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities
 
         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         Not applicable.

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

                           (a)      Exhibit No. 27 - Financial Data Schedule

                           (b)      Reports on Form 8-K - None

<PAGE>




                                   SIGNATURES


In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.
                                           TELEBYTE TECHNOLOGY, INC.
                                           (Registrant)

Dated:    November 8, 1996                 By:                                
                                           Joel A. Kramer
                                           President, Chief Executive Officer
                                           and Chief Financial Officer