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	                  September 30, 2001

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 - 4,289,551 shares of as of November 12, 2001.

<TABLE>
                     PART I. - FINANCIAL INFORMATION

                                                      SUTRON CORPORATION
                                                       BALANCE SHEETS
<CAPTION>
                                                         (Unaudited)
                                    		September 30,     December 31,
                                         	 	   2001	       2000
                                       		___________     ___________
<S>                                   		 <C>			<C>
Assets
Current Assets:
 Cash                                 		 $  134,502	     $    2,799
 Accounts receivables       			        1,441,750		2,029,170
 Inventory	                            		  3,051,060		2,702,256
 Other	                                        469,129         572,029
                                       		___________     ___________
Total Current Asset	                    	 $5,096,441	     $5,306,254

 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,655,590
  and $1,444,605						    774,092		  828,637

Deposits and Other Assets                 	     14,247  	   14,247
                                       		___________		__________
TOTAL ASSETS                        		 $5,884,780      $6,149,138

</TABLE>

<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     			<C>		<C>
Current Liabilities:
 Accounts payable	                    		    $  615,384	$1,046,220
 Accrued payroll						    	  65,229       150,977
 Accrued expenses                        			 440,745       473,510
 Line of credit			 		             657,086       406,181
Current maturities of long-term notes			 118,204        56,579
								    __________ 	__________
Total Current Liabilities                		    $1,896,648   $2,133,467

Long-term liabilities:
 Long-term notes payable                       		 233,741	   111,841
								    __________	__________
	Total liabilities					     2,130,389     2,245,308

Stockholders' Equity:
 Common stock, $.01 par value,				  42,896        42,934
 Additional paid in capital	             	     2,306,656     2,310,661
 Retained Earnings                  	 	     1,404,839     1,550,235
								     ___________	__________
Total Stockholders' Equity                	     3,754,391	 3,903,830

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    		    $5,884,780    $6,149,138

See Accompanying Notes to Financial Statements
</TABLE>

<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			         Three Months Ended
                                             			September 30,
                                          		    2001	     2000
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 	 $2,274,885  $3,569,338

Cost of Goods Sold			      		  1,417,361   1,939,777
                                    			___________	__________
Gross Profit                              		    857,524   1,629,561

Research and Development Expenses	     			    286,325     338,138

Selling, General, and
 Administrative Expenses                  	          502,146     609,169
                                       			___________	  ___________
Income (Loss) from Operations		      		     69,053     682,254

Interest Expense                            		     25,411      16,371

Income (Loss) before Provision  				____________  ___________
 for Income Taxes			        			      43,642    665,883

Provisions for Income Taxes		       		       5,987    251,619
                                 				____________  ___________
Net Income                           			   $  49,629  $ 414,264

Net Income per Common Share        	              		 $(.01)     $(.10)


Weighted Average Number
 of Common Shares                       	 	          4,289,551  4,298,351

See Accompanying Notes to Financial Statements
</TABLE>

<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			         Nine Months Ended
                                             			  June 30,
                                          		    2001	    2000
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 	 $6,834,015  $7,249,800

Cost of Goods Sold			      		  4,261,250	  4,329,252
                                    			___________	__________
Gross Profit                              		  2,572,765   2,920,548

Research and Development Expenses	     		    	   1,107,136  1,049,079

Selling, General, and
 Administrative Expenses                       	        1,738,086	  1,696,580
                                       			___________	  ___________
Income (Loss) from Operations		      		    (272,457)    174,889

Interest Expense                            		     54,939       19,754

Income (Loss) before Provision  				____________  ___________
 for Income Taxes			        	    		   (327,396)     155,135

Provisions for Income Taxes		       		   (182,000)     57,820
                                 				____________  ___________
Net Income                           			  $(145,396)  $  97,315

Net Income per Common Share        	              		$(.03)	 $(.02)

Weighted Average Number
 of Common Shares                       	 	          4,290,904  4,298,351

See Accompanying Notes to Financial Statements
</TABLE>


<TABLE>

                                                        SUTRON CORPORTION
                                                       STATEMENTS OF CASH FLOWS
                                                            (Unaudited)
<CAPTION>
                                        			  Nine Months Ended
                                                	     September 30,
                                             		2001    	   2000
                                           		___________  __________
<S>                                        		<C>		<C>
Cash Flows from Operating Activities:
  Net income (loss)                       		$ (145,396)  $   97,315

  Depreciation and amortization                	         133,335	    133,335
(Increase) Decrease in:
    Accounts receivables                      	         587,420	    (414,882)
    Costs and estimated earnings in
      excess of contract billings             	               0       (4,598)
    Inventory                            			  (348,804)     (30,170)
    Other assets            		           	         102,900	   (235,892)
Increase (Decrease) in:
    Accounts payable                          	        (430,836)     103,208
    Accrued expenses			          		  (118,513)    (180,384)
    Accrued income taxes			       	         0       40,000
    Estimated losses on uncompleted
     contracts                                 		         0      (21,907)
									  __________	_______
Net Cash Provided by Operating Activities  	         (219,894)    (513,975)

Cash Flows from Investing Activities:
Capital expenditures                         	          (78,790)    (197,292)
									    ________	______
Net Cash Used in Investing Activities	     		    (78,790)    (197,292)

Cash Flows from Financing Activities:
Proceeds from advances on line of credit                  250,905	     491,646
Proceeds from term note						    246,500	     107,565
Payments on Term notes payable              	          (62,975)          0
Payments on Installment notes payable			   	    0           0
Purchase of Treasury Stock					     (4,043)	    0
									   __________	_______
Net Cash (Used) by Financing Activities	       	     430,387      599,211
									   ____________   _________
Net Increase (Decrease) in Cash                  	     131,703      (112,056)
Cash and Cash Equivalents, January 1	        	       2,799       159,507
                                             		   ___________	_________
Cash and Cash Equivalents, September 30			  $  134,502	$ 47,451
See Accompanying Notes to Financial Statements
</TABLE>


SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

September 30, 2001


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 2000 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.


                          MANAGEMENT'S DISCUSSION AND ANALYSIS
                                OF FINANCIAL CONDITION
                               AND RESULTS OF OPERATIONS

Results of Operations

Third Quarter 2001 Compared to 2000

Net Revenues.  Sutron Corporation revenues for the
fiscal quarters ended September 30, 2001 and
September 30, 2000 were $2,274,885 and $3,569,338,
respectively (a decrease of 36%).  The strong revenues in
the third quarter of fiscal 2000 were the result of several
international projects totaling approximately $1,400,000.
The Company had strong orders/bookings during the third quarter
of fiscal 2001 totaling $3,972,000. Orders for the SATLINK G-312,
the Company's new transmitter that is capable of transmitting
at 100, 300, and 1200 baud and is sold either as a stand-
alone unit or with a data logger, totaled $1,318,000 since
June 30, 2001. Start-up production problems however limited
shipments to less than $200,000. The Company expects to have the
problems resolved during the fourth quarter of fiscal 2001.

Gross Profit.  The Company's gross profit for the quarter
ended September 30, 2001 decreased 47% to $857,524
from $1,629,561 for the quarter ended September 30, 2000.
Gross profit as a percentage of sales decreased  to 38%
from 46%.  Gross profits decreased in 2001 due primarily
to the decrease in sales.

Selling, General And Administrative.  Selling, general
And  administrative costs decreased to $502,146
for the quarter ended September 30, 2001 from $609,169
for 2000.  There were no expenditures for sales
commissions during the third quarter of 2001 as compared
with approximately $101,000 of commissions during the
third quarter of 2000.  The commissions in 2000 were
paid to agents who represented the company on the Company's
international contracts.

Research And Development.  Research and development
expenses decreased 15% to $286,325 in the quarter ended
September 30, 2001 from $338,138 in the quarter ended
September 30, 2000. The decrease is primarily due to
a reduction in R&D personnel.

Nine months ended September 30, 2001 Compared to 2000

Revenues.  The Company's revenues for the nine months ended
September 30, 2001 decreased 6% to $6,834,015 from revenues
of $7,249,800 in 2000.  Revenues from international projects
decreased 65% to $859,405 in fiscal 2001 from $2,436,601 in
fiscal 2000. This was a decrease of $1,577,196 or 65%. The
Company has not won any large international projects in fiscal
2001 as compared to fiscal 2000 when the Company performed on
several large international projects in Peru.  The
Company is dependent on winning international projects for its
international revenues as opposed to domestic revenues being
derived primarily from sales of off-the-shelf equipment to
federal agencies and city and state governments. Domestic
revenues rose 24% to $5,974,610 in 2001 from $4,813,199.  This
was an increase of $1,161,411 and was due to $1,200,000 of
increased sales of the 8210 Datalogger/Transmitter product line.
The increase in 8210 Datalogger/Transmitter sales was due to
strong orders from the US Geological Survey.  Fiscal 2000 was
a down year for 8210 sales to the US Geological Survey. In 1999
the US Geological Survey used a one-time funding allocation to
purchase approximately $1,900,000 of additional 8210 products.
The 1999 purchases however dampened 2000 purchases by the
US Geological Survey.

Gross Profit.  Gross profit for 2001 decreased to $2,572,765
from $2,920,548 in 2000.  Gross margin as a percentage of
revenues for 2001 decreased to 38% as compared to 40%
in 2000.  The decrease in the Company's gross margin as a
percentage of sales is attributed to the decreased sales volume.

Selling, General and Administrative.  Selling, general and
administrative expenses increased to $1,738,086 in 2001 from
$1,696,580 in 2000, an increase of $41,506 due to increased
sales and marketing activities and international selling
expenses.

Research and Development.  Research and development
expenses increased 6% to $1,107,136 in 2001 from $1,049,079
in 2000, an increase of $58,056. The Company is working
on four major new products and has added additional
engineers and support staff and increased spending on
application and software development projects resulting in the
increase in expenditures over the prior year.

Backlog.  The Company's backlog of orders at September 30, 2001 was
approximately $4,024,000 as compared with a backlog of approximately
$3,407,000 in 2000.  The Company anticipates that 90%
of its backlog will be shipped in 2001.

Liquidity and Capital Resources

Cash and cash equivalents increased to $134,502 at September 30,
2001, compared to $2,799 at December 31, 2000.

The ratio of current assets to current liabilities was 2.7 as of
September 30, 2001, compared to 2.5 as of December 31, 2001.  Working
capital increased $14,012 to $3,186,799 at the end of the third
quarter of fiscal 2001 compared to $3,172,787 at the end of fiscal 2001.

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 2001.

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.


                            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)



November 13, 2001                        /s/Raul S. McQuivey
Date        	                       Raul S. McQuviey
                                         Principal Executive Officer

November 13, 2001                        /s/Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer



Exhibit 11
Sutron Corporation
Computation of Per Share Earnings

<TABLE>
<CAPTION>
					 	   Three Months Ended	   Nine Months Ended
                                        	 September 30,		September 30,
                                        2001	     2000	  2001	   2000
                                     __________	_________	_________	_________
<S>						<C>		<C>		<C>		<C>
Basic EPS
Average shares outstanding		4,289,551	4,298,351	4,290,904	4,298,351
Net Income					$  49,629	 $414,264	$(145,396)	  $97,315
Net Income per common share		     $.01	     $.10	    $(.03)	     $.02

Dilutive EPS
Average shares outstanding		4,289,551	4,298,351	4,290,904	4,298,351
Effect of dilutive securities		        -	      -	        -	   14,205
Total average shares outstanding	4,289,551	4,298,351	4,290,904	4,312,556
Net earnings				$  49,629	$ 414,264	$(145,396)	  $97,315
Net income per diluted share		     $.01	     $.10	    $(.03)	     $.02

</TABLE>

Article 5 Fin. Data Schedule for 3rd Qtr 10-QSB

<TABLE>
<S>                                                       <C>
<PERIOD-TYPE>                                   		9-MOS
<FISCAL-YEAR-END>                          			DEC-31-2001
<PERIOD-END>                                   			SEP-30-2001
<CASH>                                                 	134502
<SECURITIES>                                     		0
<RECEIVABLES>                                 			1441750
<ALLOWANCES>                                 			0
<INVENTORY>                                     		3051060
<CURRENT-ASSETS>                          			5083449
<PP&E>                                                 	2429682
<DEPRECIATION>                               			1655590
<TOTAL-ASSETS>                                			5884780
<CURRENT-LIABILITIES>                  				1896650
<BONDS>                                             		0
<COMMON>                                          		42896
<PREFERRED-MANDATORY>            					0
<PREFERRED>                                      		0
<OTHER-SE>                                          		3711494
<TOTAL-LIABILITY-AND-EQUITY> 						5884780
<SALES>                                                 	6834015
<TOTAL-REVENUES>                          			6834015
<CGS>                                                     	4261250
<TOTAL-COSTS>                                  			4261250
<OTHER-EXPENSES>                           			0
<LOSS-PROVISION>                             			0
<INTEREST-EXPENSE>                       				54939
<INCOME-PRETAX>                            			(327396)
<INCOME-TAX>                                    		(182000)
<INCOME-CONTINUING>                    				(145396)
<DISCONTINUED>                                 			0
<EXTRAORDINARY>                             			0
<CHANGES>                                           		 0
<NET-INCOME>                                      		(145396)
<EPS-PRIMARY>                                     		(.03)
<EPS-DILUTED>                                     		(.03)
</TABLE>