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, 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 June 30, 2001.

<TABLE>
                     PART I. - FINANCIAL INFORMATION

                                                      SUTRON CORPORATION
                                                       BALANCE SHEETS
<CAPTION>
                                                         (Unaudited)
                                    		  June 30,     December 31,
                                         	 	   2001	       2000
                                       		___________     ___________
<S>                                   		 <C>			<C>
Assets
Current Assets:
 Cash                                 		 $   85,372	     $    2,799
 Accounts receivables       			        1,414,007		2,029,170
 Inventory	                            		  3,053,312		2,702,256
 Other	                                        537,576         572,029
                                       		___________     ___________
Total Current Asset	                    	 $5,090,267	     $5,306,254

 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,611,145
  and $1,444,605						    814,305		  828,637

Deposits and Other Assets                 	     14,247  	   14,247
                                       		___________		__________
TOTAL ASSETS                        		 $5,918,819      $6,149,138

</TABLE>

<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     			<C>		<C>
Current Liabilities:
 Accounts payable	                    		    $  536,508	$1,046,220
 Accrued payroll						    	 158,949       150,977
 Accrued expenses                        			 451,073       473,510
 Line of credit			 		             680,897       406,181
Current maturities of long-term notes			 118,204        56,579
								    __________ 	__________
Total Current Liabilities                		    $1,945,631    $2,133,467

Long-term liabilities:
 Long-term notes payable                       		 268,427	   111,841
								    __________	__________
	Total liabilities					     2,214,058     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                  	 	     1,355,209     1,550,235
								     ___________	__________
Total Stockholders' Equity                	     3,704,761	 3,903,830

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    		    $5,918,819    $6,149,138

See Accompanying Notes to Financial Statements
</TABLE>

<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			June 30,
                                          		    2001	     2000
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 	 $2,496,016  $1,762,892

Cost of Goods Sold			      		  1,592,282   1,184,263
                                    			___________	__________
Gross Profit                              		    903,734     578,629

Research and Development Expenses	     			    400,058     297,062

Selling, General, and
 Administrative Expenses                  	          598,206     487,562
                                       			___________	  ___________
Income (Loss) from Operations		      		    (94,530)   (205,995)

Other Expense                               		          0           0

Interest Expense                            		     21,268       1,761

Income (Loss) before Provision  				____________  ___________
 for Income Taxes			        			    (115,798)  (207,756)

Provisions for Income Taxes		       		    ( 85,013)  (57,800)
                                 				____________  ___________
Net Income                           			   $( 30,785) $(149,956)

Net Income per Common Share        	              		 $(.01)     $(.03)


Weighted Average Number
 of Common Shares                       	 	          4,290,132  4,298,351

See Accompanying Notes to Financial Statements
</TABLE>

<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Six Months Ended
                                             			June 30,
                                          		    2001	    2000
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 	 $4,559,130  $3,680,462

Cost of Goods Sold			      		  2,843,889	 2,385,891
                                    			___________	__________
Gross Profit                              		  1,715,241   1,294,571

Research and Development Expenses	     		    	    820,810	  710,942

Selling, General, and
 Administrative Expenses                       	        1,235,942	  1,090,994
                                       			___________	  ___________
Income (Loss) from Operations		      		   (341,511)   (507,365)

Other Expense                               			-	        -

Interest Expense                            		     29,528        3,383

Income (Loss) before Provision  				____________  ___________
 for Income Taxes			        	    		   (371,039)     (510,748)

Provisions for Income Taxes		       		    (176,013)    (193,800)
                                 				____________  ___________
Net Income                           			   $(195,026)  $(316,948)

Net Income per Common Share        	              		$(.05)	 $(.07)

Weighted Average Number
 of Common Shares                       	 	          4,291,592	 4,298,351

See Accompanying Notes to Financial Statements
</TABLE>


<TABLE>

                                                        SUTRON CORPORTION
                                                       STATEMENTS OF CASH FLOWS
                                                            (Unaudited)
<CAPTION>
                                        			Six Months Ended
                                                		June 30,
                                             		2001    	   2000
                                           		___________  __________
<S>                                        		<C>		<C>
Cash Flows from Operating Activities:
  Net income (loss)                       		$ (195,026)  $ (316,948)

  Depreciation and amortization                	          88,908	     88,890
(Increase) Decrease in:
    Accounts receivables                      	         615,163	    627,870
    Costs and estimated earnings in
      excess of contract billings             	               0       (4,598)
    Inventory                            			  (351,056)    (461,701)
    Other assets            		           	          34,453	   (256,440)
Increase (Decrease) in:
    Accounts payable                          	        (509,712)     (61,855)
    Accrued expenses			          		   (14,465)    (143,519)
    Accrued income taxes			       	         0            0
    Estimated losses on uncompleted
     contracts                                 		         0      (21,907)
									  __________	_______
Net Cash Provided by Operating Activities  	         (331,735)    (550,208)

Cash Flows from Investing Activities:
Capital expenditures                         	          (74,576)    (248,828)
									    ________	______
Net Cash Used in Investing Activities	     		    (74,576)    (248,828)

Cash Flows from Financing Activities:
Proceeds from advances on line of credit                  274,716	     652,585
Proceeds from term note						    246,500		    0
Payments on Term notes payable              	          (28,289)     (12,500)
Payments on Installment notes payable			   	    0           0
Purchase of Treasury Stock					     (4,043)	    0
									   __________	_______
Net Cash (Used) by Financing Activities	       	     488,884     640,085
									   ____________   _________
Net Increase (Decrease) in Cash                  	     82,573      (158,951)
Cash and Cash Equivalents, January 1	        	      2,799       159,507
                                             		   ___________	_________
Cash and Cash Equivalents, June 30				$    85,371		$ 556
See Accompanying Notes to Financial Statements
</TABLE>


SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

June 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

Three months ended June 30, 2001 Compared to 2000

Net Revenues.  The Company's revenues for the three months
 ended June 30, 2001 increased 42% to $2,496,016 from $1,762,892
in 2000 due to increased sales of products and primarily
sales of the 8210 datalogger product line.

Gross Profit.  Gross profit for 2001 increased to $903,734 from
$578,629 in 2000.  Gross margin as a percentage of revenues
for 2001 increased to 36% as compared to 33% in 2000.  The
increase in the Company's gross margin as a percentage of sales
is attributed to increased sales volume and to increased sales
of the 8210 datalogger product line that carry higher margins
than services.

Selling, General And Administrative.  Selling, general
and administrative expenses increased to $598,206 in 2001
from $487,562 in 2000, an increase of $110,644 or 23%. The
increase was due to the addition of a salesman and
increased selling activities.

Research And Development.  Research and development expenses
increased 35% to $400,058 in 2001 from $297,062 in 2000, an
increase of $102,996.  The Company began production of its
SATLINK transmitter and Xpert Datalogger in the second quarter
of fiscal 2001.  Product development expenditures are primarily
focused on these two products and on XConnect which is new systems
software.  Additional personnel were hired to complete
these products resulting in the increase in expenses.

Interest Expenses.  Interest expenses increased to $21,268 in 2001
from $1,761 in 2000 as a result of the company's increased
borrowings on the line of credit to finance inventories relating
to SATLINK and Xpert.

Six months ended June 30, 2001 Compared to 2000

Revenues.  The Company's revenues for the six months ended
June 30, 2001 increased 24% to $4,559,130 from revenues
of $3,680,462 in 2000 due to decreased sales of the
8210 Data Recorder/Transmitter product line.

Gross Profit.  Gross profit for 2001 increased to $1,715,241
from $1,294,571 in 2000.  Gross margin as a percentage of
revenues for 2001 increased to 38% as compared to 35%
in 2000.  The increase in the Company's gross margin as a
percentage of sales is attributed to the increased sales volume
and increased in product sales that carry higher margins than
services.

Selling, General and Administrative.  Selling, general and
administrative expenses increased to $1,235,942 in 2001 from
$1,090,994 in 2000, an increase of $144,948 due to increased
sales and marketing activities.

Research and Development.  Research and development
expenses increased $109,868 to $820,810 in 2001 from $710,942
in 2000.  The Company increased its engineering staff and
expanded product development activities in 2001.

Interest Expenses.  Interest expenses increased to $29,528 in 2001
from $3,383 in 2000 as a result of the company's increased
borrowings on the line of credit to finance inventories relating
to SATLINK and Xpert.

Backlog.  The Company's backlog of orders at June 30, 2000 was
approximately $2,303,000.  The Company anticipates that 95%
of its June backlog will be shipped in 2001.


Liquidity and Capital Resources

Cash and cash equivalents increased to $85,372 at June 30, 2001,
compared to $2,799 at December 31, 2000.

The ratio of current assets to current liabilities was 2.6 as of
June 30, 2001, compared to 2.5 as of December 31, 2000.  Working
capital decreased $28,151 to $3,144,636 at the end of the second
quarter of fiscal 2001 compared to $3,172,787 at the end of fiscal 2000.

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 4. Submission of Matters to a Vote of Security Holders

	On May 9, 2001, 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 2001.  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 4,293,351.  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
	
			<c>		<c>			<c>
	Raul S. McQuivey	3,770,485	--			9,280
	Thomas N. Keefer	3,770,485	--			9,280
	Daniel W. Farrell	3,770,485	--			9,280
	Ronald C. Dodson	3,770,485	--			9,280

</TABLE>

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

For		Against		Abstain
3,778,065	  100			1,600

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)



August 15, 2001                             /s/Raul S. McQuivey
Date        	                       Raul S. McQuviey
                                         Principal Executive Officer

August 15, 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	   Six Months Ended
                                        	 June 30,			 June 30,
                                        2001	     2000	  2001	   2000
                                     __________	_________	_________	_________
<S>						<C>		<C>		<C>		<C>
Basic EPS
Average shares outstanding		4,290,132	4,298,351	4,291,592	4,298,351
Net Income					$(30,785)	$(149,956)	$(195,026)	$(316,948)
Net Income per common share		    $(.01)	    $(.03)	    $(.05)	   $(.07)

Dilutive EPS
Average shares outstanding		4,290,132	4,298,351	4,291,592	4,298,351
Effect of dilutive securities		        -	      -	        -	   14,205
Total average shares outstanding	4,290,132	4,298,351	4,291,592	4,312,556
Net earnings				$ (30,785)	$(149,956)	$(195,026)	$(316,948)
Net income per diluted share		    $(.01)	    $(.03)	    $(.05)	    $(.07)

</TABLE>

Article 5 Fin. Data Schedule for 1st Qtr 10-QSB

<TABLE>
<S>                                                       <C>
<PERIOD-TYPE>                                   		6-MOS
<FISCAL-YEAR-END>                          			DEC-31-2001
<PERIOD-END>                                   			JUN-30-2001
<CASH>                                                 	85372
<SECURITIES>                                     		0
<RECEIVABLES>                                 			1414007
<ALLOWANCES>                                 			0
<INVENTORY>                                     		3053312
<CURRENT-ASSETS>                          			5149801
<PP&E>                                                 	2425449
<DEPRECIATION>                               			1611145
<TOTAL-ASSETS>                                			5918818
<CURRENT-LIABILITIES>                  				1945631
<BONDS>                                             		0
<COMMON>                                          		42896
<PREFERRED-MANDATORY>            					0
<PREFERRED>                                      		0
<OTHER-SE>                                          		3661864
<TOTAL-LIABILITY-AND-EQUITY> 						5918818
<SALES>                                                 	4559130
<TOTAL-REVENUES>                          			4559130
<CGS>                                                     	2843889
<TOTAL-COSTS>                                  			2843889
<OTHER-EXPENSES>                           			0
<LOSS-PROVISION>                             			0
<INTEREST-EXPENSE>                       				29528
<INCOME-PRETAX>                            			(371039)
<INCOME-TAX>                                    		(176013)
<INCOME-CONTINUING>                    				(195026)
<DISCONTINUED>                                 			0
<EXTRAORDINARY>                             			0
<CHANGES>                                           		 0
<NET-INCOME>                                      		(195026)
<EPS-PRIMARY>                                     		(.05)
<EPS-DILUTED>                                     		(.05)
</TABLE>