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	June 30, 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 August 11, 1998.

<PAGE>
<TABLE>
                     PART I. - FINANCIAL INFORMATION
                          
                                                                                                  SUTRON CORPORATION
                                                                                                       BALANCE SHEETS
<CAPTION>
                                                                                                               (Unaudited)
							June 30,     	December 31,
                                         	 				1998	         	1997
                                       					___________     ___________
<S>                                   					 <C>		<C>
Assets
Current Assets:
 Cash                                 					    $289,921	$168,548
 Accounts receivables       			             		    1,208,762	1,804,525
 Cost and estimated earnings in excess
    of billings						     136,110	402,523
 Inventory	                            				  1,786,369	1,528,802
 Other	                                    				     424,100	71,670
                                       					___________     ___________
Total Current Asset	                    			3,845,262	3,976,068
				
 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,198,343
  and $1,154,351						      477,083	184,551
				
Investment                                 				        699,224	493,118
				
Deposits and Other Assets                 			         63,269	38,746
                                       					___________	__________
TOTAL ASSETS                        				  $5,084,838	$4,692,483

</TABLE>
<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     				<C>		<C>
Current Liabilities:				
 Accounts payable	                    			$  533,171	$610,568
 Accrued payroll						    80,061	80,521
 Accrued expenses                        				    493,162	415,021
 Accrued income taxes					               0	110,359
 Contract billings on contracts in progress in
  excess of costs and estimated earnings			     169,238	169,238
 Estimated losses on
  uncompleted contracts                       			        5,620	24,902
 Line of credit		                        			    787,526	573,171
Shareholder loans payable	             		 		      55,000	80,000
Installment notes payable - current portion			       5,321	6,657
 Term notes payable- current portion                    		    171,504	171,504
							_________	__________
Total Current Liabilities                				   2,300,603	2,241,941
				
Long-term liabilities:		
 Installment note payable					                 0	253
 Term notes payable                       				      14,683	100,435
							_________	__________
	Total liabilities					  2,315,286	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                  	 			        444,427	24,729
                                       					 ___________	___________
Total Stockholders' Equity                			      2,769,552	2,349,854

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    			$     5,084,838	    $ 4,692,483

<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			June 30,
                                          			        1998	     1997
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 $  2,084,978	$    2,169,214
				
Cost of Goods Sold			      1,338,971	       1,430,206
                                    			___________	__________
Gross Profit                              		     746,007	       739,008
				
Research and Development Expenses	       250,136	        195,906
				
Selling, General, and				
 Administrative Expenses                  	         508,626	        516,643
                                       			___________	___________
Income (Loss) from Operations		          (12,755)	        26,459

Other Income                               		          193,946	                    0

Interest Expense                            		            14,887	          38,178
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			          166,304	         (11,719)
				
Provisions for Income Taxes		         (245,595)	         (16,000)
                                 			____________	___________
Net Income (Loss)                      		$          411,899	$     4,281
				
Net Income (Loss) per Common Share	                   $.10	$             $.0
				
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 OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Six Months Ended
                                             			June 30,
                                          			        1998	     1997
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 $ 3,894,727	$   4,841,355
				
Cost of Goods Sold			    2,447,459	      3,011,942
                                    			___________	__________
Gross Profit                              		     1,447,268	    1,829,413
				
Research and Development Expenses	         452,376	       411,503
				
Selling, General, and				
 Administrative Expenses                  	         989,577	       961,962
                                       			___________	___________
Income from Operations			             5,315	       455,948

Other Income                             		          186,727	                    0

Interest Expense                            		             28,689	          76,372
				
Income before Provision  			____________	___________
 for Income Taxes			           163,353	        377,615
				
Provisions for Income Taxes		          (256,345)	          136,000
                                 			____________	___________
Net Income	                      		$          419,698	$         241,615
				
Net Income (Loss) per Common Share	              $.10	$             $.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>
                                        			      Six Months Ended
                                                			June 30,
                                             		1998    	       	1997
                                           		___________       ___________
<S>                                        		<C>		<C>  
Cash Flows from Operating Activities:			
Net income (loss)                       		$ 419,698	$  241,615
Noncash items included in net income:
Depreciation and amortization                	        50,089	50,089
Loss on sale of asset                  		                 0	   1,961
Gain on increase of land investment	   (206,106)	0

  (Increase) Decrease in: 			
    Accounts receivables                      	      595,763	(176,909)
    Costs and estimated earnings in
      excess of contract billings             	       266,413	(263,010)
    Inventory                                 		      (257,567)	462,551
    Other current assets                       	      (352,429)	(33,305)
    Other assets				       (30,621)	0
			
  Increase (Decrease) in:			
    Accounts payable                          	     (77,397)	(265,122)
    Accrued expenses                           	     (32,678)	356,887
Estimated losses on uncompleted
     contracts                                 		     (19,282)	            0
                                          			__________	__________
Net Cash Provided by Operating Activities  	     355,884	374,757
			
Cash Flows from Investing Activities:			
  Capital expenditures                         	 (336,526)	(91,808)
					___________       ___________
Net Cash Used in Investing Activities	 (336,526)	(81,308)
			
Cash Flows from Financing Activities:			
  Proceeds from line of credit		       214,355	9,839
  Payments on Term notes payable              	       (85,752)	(123,213)
  Payments on Installment notes payable	         (1,589)	(14,023)
  Payments on Stockholder loans		        (25,000)	          0
					___________	__________
Net Cash (Used) by Financing Activities	         102,014	(127,397)

Net Increase (Decrease) in Cash                  	        121,372	166,052
Cash and Cash Equivalents, January 1	        168,549	78,971
                                             		___________	__________
Cash and Cash Equivalents, June 30	$       289,921	$ 245,023

<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>

SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

June 30, 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

Second Quarter 1998 Compared to 1997

Net Revenues.  Sutron Corporation revenues for the 
fiscal quarters ended June 30, 1998 and June 30, 1997 were 
$2,084,978 and $2,169,214, respectively (a decrease of 4%). 

Gross Profit.  The Company's gross profit for the quarter
 ended June 30, 1998 increased 1% to $746,007 from $739,008 
 for June 30, 1997.  Gross profit as a percentage of sales increased
 to 35.8% from 34.1%.  Gross profit in 1998 was affected by 
increased indirect labor and expense charges relating to the opening
of a new customer support facility in Boise, Idaho and reduced sales 
volume.  The gross margin in 1998 was affected by cost overruns
on the installation of the SIMEPAR contract in Brazil and 
an Air Force repair contract.

Selling, General And Administrative.  Selling, general and
 administrative costs increased $8,018 to $508,626 for the quarter
 ended June 30, 1998 from $516,643 for 1997.  The increase is due
 to the increased sales and marketing activities and increased
general and administrative costs.

Research And Development.  Research and development 
expenses increased 28% to $250,136 in the quarter ended June 30,
 1998 from $195,906 in the quarter ended June 30, 1997.  The 
Company is currently developing five new products to 
improve existing product lines and to access new markets.  

Other Income.  A joint venture between Sutron and Virginia 
Energy Services was started on February 27, 1998 to 
sell remote monitoring systems of backup power generators.  
One employee was hired in February 1998 to do sales and
 marketing.  The joint venture recognized its first revenues in 
June 1998 from product sales to Hickam AFB in Hawaii.  For the
 three months ended June 30, 1998, Sutron's investment had 
decreased by $12,160 representing our share of the loss for 
the joint venture.

The Company sold its 4.2 acre lot in the Loudoun 
Tech Center on July 13, 1998 to Bavar Properties Group, a
 developer located in Baltimore, for $700,000.  The land was
 originally purchased for $1,219,792 in October 1986.  An 
additional $80,518 was spent on architectural drawings.  The
 loss of approximately $600,000 on the sale resulted in a 
deferred tax benefit of $230,000 as of June 30, 1998 which
 tax benefit reduced income tax expenses.  At June 30, 1998
 the Company wrote the land up from its book value of $493,000
 resulting in a gain of $206,106.

Six months ended June 30, 1997 Compared to 1996

Revenues.  The Company's revenues for the six months ended
 June 30, 1998 decreased 19.6% to $3,894,727 from revenues 
of $4,841,355 in 1997 due to decreased product sales of 
primarily the 8200, 8210 and 8400 products of $891,503.  
A strong backlog of these  products was carried over into 
1997.  Revenues from services decreased $55,125 from the 
prior year due to increased work on indirect tasks 
relating to sales and marketing applications.

Gross Profit.  Gross profit for 1998 decreased to $1,447,268
 from $1,829,413 in 1997.  Gross margin as a percentage of 
revenues for 1998 decreased to 37.2% as compared to 37.8% 
in 1997.  The decrease in the Company's gross margin as a 
percentage of sales is attributed to the reduced sales volume 
of $946,628 and to increased indirect labor and expenses relating 
to a new customer support facility opened in Boise, Idaho.

Selling, General and Administrative.  Selling, general and 
administrative expenses  increased to $989,577 in 1998 from
$961,962 in 1997, an increase of $27,615 due to of increased
 proposal efforts relating to projects and increased general and 
administrative expenses.  Selling, general and administrative 
expenses were offset by a $56,975 decrease in agent 
commissions.  

Research and Development.  Research and development
 expenses increased 9.9% to $452,376 in 1998 from $411,503 
in 1997, a increase of $40,872.  The Company is currently 
developing five new products certain of which involve
 subcontractors.  One new R&D employee
 was added in March, an RF engineer, and an entry level 
software engineer was added in June. 

Other Income.  A joint venture between Sutron and Virginia 
Energy Services was started on February 27, 1998 to 
sell remote monitoring systems of backup power generators.  
One employee was hired in February 1998 to do sales and
 marketing.  The joint venture recognized its first revenues in 
June 1998 from product sales to Hickam AFB in Hawaii.  As of
 June 30, 1998, Sutron's investment had decreased by $19,379 
representing our share of the loss for the joint venture.

The Company sold its 4.2 acre lot in the Loudoun Tech 
Center on July 13, 1998 to Bavar Properties Group, a developer
 located in Baltimore, for $700,000.  The land was originally 
purchased for $1,219,792 in October 1986.  An additional 
$80,518 was spent on architectural drawings.  The loss of 
approximately $600,000 on the sale resulted in a deferred tax 
benefit of $230,000 as of June 30, 1998 which tax benefit reduced 
income tax expenses.  At June 30, 1998 the Company wrote
 the land up from its book value of $493,000 resulting in a
 gain of $206,106.

Backlog.  he Company's backlog of orders at June 30, 1998 was 
approximately $1,528,000.  The Company anticipates that 90% 
of its June backlog will be shipped in 1998.

Liquidity and Capital Resources

Cash and cash equivalents increased to $289,921 at June 30, 1998, 
compared to $168,549 at December 31, 1997.

The ratio of current assets to current liabilities was 1.7 as of 
June 30, 1998, compared to 1.8 as of December 31, 1997.  Working 
capital decreased $189,470 to $1,544,659 at June 30, 1998
 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 Company sold  the lot 
on July 13, 1998 to Bavar Properties Group, a developer
 located in Baltimore, for $700,000.  The land was originally 
purchased for $1,219,792.  An additional $80,518 was spent on 
architectural drawings.  The land was originally intended to 
be the site of a headquarters and manufacturing facility. 
The loss of approximately $600,000 on the sale resulted in
 a deferred tax benefit of $230,000 as of June 30, 1998 which 
tax benefit reduced income tax expenses.

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 4. Submission of Matters to a Vote of Security Holders

	On May 13, 1998, an Annual Meeting of Shareholders 
of Sutron Corporation was held.  Directors elected at the 
meeting were Raul S. McQuivey, Thomas N. Keefer, 
Daniel W. Farrell, Glenn A. Conover and Ronald C. Dodson.
  Thompson, Greenspon & Co., P.C. were appointed as 
independent accountants for 1998.  The election of directors 
and the appointment of the independent accountants were
 the only matters voted upon at the meeting.  The number of
 shares eligible to vote at the meeting were 4,225,851.  The 
results of the voting on these three matters are shown below.

<TABLE>
<CAPTION>

1.	Election of Directors

	Name	Votes For	Votes Against	Votes Withheld
	<S>			<C>		<C>	<C>
	Raul S. McQuivey	3,854,715	--	4,380
	Thomas N. Keefer	3,854,715	--	4,380
	Daniel W. Farrell		3,854,715	--	4,380
	Glenn A. Conover	3,854,715	--	4,380
	Ronald C. Dodson	3,849,796	--	9,199

</TABLE>

2.  Appointment of Thompson, Greenspon & Co., P.C. 
as Independent Accountants.

For		Against		Abstain
3,761,415	480		97,200


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)



August 11, 1998                             Raul S. McQuivey  
Date                                  Raul S. McQuviey
                                         Principal Executive Officer

August 11, 1998                             Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer