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, 1997

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, 1997.

<PAGE>
<TABLE>
                     PART I. - FINANCIAL INFORMATION
                          
                                                                                                  SUTRON CORPORATION
                                                                                                       BALANCE SHEETS
<CAPTION>
                                                                                                               (Unaudited)
                                    					March 31,     	December 31,
                                         	 			1997	         	1996
                                       					___________     ___________
<S>                                   				 <C>		<C>
Assets
Current Assets:
 Cash                                 				    $109,684	$78,970
 Accounts receivables       			             		    1,521,262	1,210,377
 Cost and estimated earnings in excess
    of billings						   828,158	628,344
 Inventory	                            			1,857,901	2,135,231
 Other	                                    				     93,033	46,482
                                       					___________     ___________
Total Current Asset	                    			4,410,038	4,099,404
				
 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,089,343
  and $1,072,273						       182,168	182,995
				
Investment                                 				        493,118	493,118
				
Deposits and Other Assets                 			         47,891	50,940
                                       					___________	__________
TOTAL ASSETS                        				  $5,133,215	$4,826,457

</TABLE>
<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     				<C>		<C>
Current Liabilities:				
 Accounts payable	                    			$  799,737	$895,524
 Accrued payroll						    96,854	60,224
 Accrued expenses                        				    361,938	396,841
 Accrued income taxes					    126,650	
 Contract billings on contracts in progress in
  excess of costs and estimated earnings			     162,702	162,702
 Estimated losses on
  uncompleted contracts                       			        1,095	1,095
 Line of credit		                        			    980,000	905,000
Shareholder loans payable	             		 		      80,000	90,000
Installment notes payable - current portion			       6,657	6,657
 Term notes payable- current portion                    		    300,000	300,000
							_________	__________
Total Current Liabilities                				   2,915,633	2,808,043
				
Long-term liabilities:		
 Installment note payable					        3,245	16,411
 Term notes payable                       				      141,222	166,222
							_________	__________
	Total liabilities					  3,060,100	2,990,676
				
Stockholders' Equity:				
 Common stock, $.01 par value,
 12,000,000 shares authorized;
 4,225,051 shares issued and outstanding in 1995
 3,957,051 shares issued and outstanding in 1994		          43,540	43,540
 Additional paid in capital	             				     2,281,585	2,281,585
 Accumulated Deficit                  	 			   (252,010)	(489,344)
                                       					 ___________	___________
Total Stockholders' Equity                			        2,073,115	1,835,781

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    			$ 5,133,215	    $ 4,826,457
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			March 31,
                                          		        1997	     1996
                                        			___________	___________
<S>                                    		 <C>		<C>
Revenues                              		 $  2,672,141	$    1,136,655
				
Cost of Goods Sold			      1,581,736	       708,315
                                    			___________	__________
Gross Profit                              		      1,090,405	       428,340
				
Research and Development Expenses	       215,598	         100,402
				
Selling, General, and				
 Administrative Expenses                  	        447,279	        365,331
                                       			___________	___________
Income (Loss) from Operations		      427,528	(37,393)

Interest Expense                            		          38,194	          40,092
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			         389,334	       (77,485)
				
Provisions for Income Taxes		         152,000	0
                                 			____________	___________
Net Income (Loss)                      		$      237,334	$      (77,485)
				
Net Income (Loss) per Common Share        	              $.05	$             $(.02)
				
Weighted Average Number
 of Common Shares                        	       4,356,419	      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,
                                             		1997    	       	1996
                                           		___________       ___________
<S>                                        		<C>		<C>  
Cash Flows from Operating Activities:			
  Net income (loss)                       		$     237,334)	$ (77,485)
 
  Depreciation and amortization                	        25,044	25,044
  Loss on sale of assets				1,961	
  (Increase) Decrease in: 			
    Accounts receivables                      	      (310,885)	663,981
    Costs and estimated earnings in
      excess of contract billings             	      (199,814)	(93,736)
    Inventory                                 		      277,330	(453,965)
    Other current assets                       	        (46,551)	(14,528)
			
  Increase (Decrease) in:			
    Accounts payable                          	      (95,787)	45,913
    Accrued expenses			      1,727	32,900
    Accrued income taxes			      126,650
    Estimated losses on uncompleted
     contracts                                 		               0	(1,018)
                                          		__________	__________
Net Cash Provided by Operating Activities  	      17,009	127,106
			
Cash Flows from Investing Activities:			
  Proceeds from sale of assets		      10,500
  Capital expenditures                         	       (33,629)	(21,184)
Net Cash Used in Investing Activities	       (23,129)	(21,184)
			
Cash Flows from Financing Activities:			
Proceeds from issuance of term
   note payable                                 		     0	0
  Payments on line of credit                  	                   0	(25,000)
  Proceeds from advance on line of credit	         75,000	
  Payments on Term notes payable              	         (25,000)	(50,000)
  Payments on Installment notes payable	          (13,166)	(1,452)
  Payments on shareholder notes		                    0	(10,000)
                                         		___________	__________
Net Cash (Used) by Financing Activities	          36,834	(86,452)

Net Increase (Decrease) in Cash                  	          30,714	19,470
Cash and Cash Equivalents, January 1	          78,970	49,889
                                             		___________	__________
Cash and Cash Equivalents, March 31	$       109,684	$   69,360
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>

SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

March 31, 1997


(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements, which should be read in conjunction 
with the financial statements of Sutron Corporation ("the Company") included
in the 1996 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)  CONTRACTS IN PROGRESS
Information with respect to contracts in progress at March 31 and 
December 31, is as follows:

<TABLE>
<CAPTION>

	March 31		December 31
	1997		1996
<S>	<C>	   <C>
Direct and indirect costs, including overhead	$2,376,163		$2,162,549
Estimated losses, net	(1,095)		(1,095)
       Totals	$2,375,068		$2,161,454
			
Billings	$1,548,005		$1,534,215
Costs and estimated earnings in excess of billings	828,158		628,334
Estimated losses on contracts in process	(1,095)		(1,095)
       Totals	$2,375,068		$2,161,454

</TABLE>

(3)  INVENTORY
Inventory is stated at the lower of cost or market.  Electronic 
components costs are based on the weighted average method.  
Work in process and finished goods costs consist of materials, 
labor and overhead and are recorded at a standard cost.  
Inventory consists of the following at March 31 and December 31:

				1997		1996
Electronic components		$562,881	$702,216
Work in process			1,005,648	1,232,440
Finished goods			289,372		200,575
				$1,857,901	$2,135,231

(4)  ACCUMULATED DEPRECIATION AND AMORTIZATION
Accumulated depreciation and amortization at March 31 and 
December 31, is as follows:

				1997		1996
Furniture and equipment		$1,060,808	$1,041,005
Automotive equipment		    21,548	24,743
Leasehold improvements		     6,987	6,525
				$1,089,343	$1,072,273

(5)  INVESTMENT
Land, including related improvements and architectural fees, 
which was originally acquired as a future plant site, is now 
being held for sale. The total amount presented as investment 
consists of land and building design fees of $1,300,311 net of 
a valuation allowance of $807,192 at March 31, 1997 and
December 31, 1996.

(6)  LINE OF CREDIT
The Company signed a loan and security agreement dated December 
11, 1992, with its bank which extends the Company a revolving line of 
credit.  The maximum amount of borrowing under the line is not to 
exceed the lesser of $1,000,000 or the Company's borrowing base as 
determined by the bank.  Interest on the unpaid balance is payable 
monthly at prime plus two percent.  The maturity date of the line is 
July 31, 1997, and the outstanding balance at March 31, 1997 and 
December 31, 1996 amounted to $980,000 and $905,000, respectively.

(7)  TERM NOTE PAYABLE
Under the above referenced loan and security agreement, the 
Company was also extended a term note payable with a principal 
amount of $2,121,222.  The remaining principal payments under the 
agreement, amount to $25,000 per month for 18 months and 1 final 
payment on July 15, 1998 for the remaining unpaid balance.  Interest 
on the unpaid balance is payable monthly at prime plus two percent.  
Additional principal payments may be due under the agreement if the 
Company reaches specified cash flow levels described by the bank.

The above referenced line of credit and term note payable are secured 
by substantially all assets of the Company.  Additionally, the loan 
agreement contains certain restrictive financial covenants.  Principal 
maturities for all indebtedness described in Notes 6 and 7 are as 
follows at December 31:

Year ending December 31:			
1997						$1,211,657
1998						173,769
1999						5,075
2000						3,789
						$1,394,290

(8)  STOCKHOLDER LOANS PAYABLE
At March 31, 1997 the Company had promissory notes totaling 
$80,000 payable on demand to two officers of the Company.  The 
promissory notes are expected to be repaid in 1997 with interest at 
10.75 percent.

(9)  LEASE OBLIGATIONS
The Company entered into a lease on October 23, 1992 for its 
headquarters and production facilities.  The 5.5-year operating 
lease calls for monthly rent of $12,021, including $3,090 
estimated as the Company's pro rata share of operating 
expenses, and annual rent increases of 3%.  Rent expense 
amounted to $151,125 for 1995. The following is a schedule,
 by years, of future payments due:
  	
Year ending December 31:		
1997					$147,473
1998					36,063
					$183,536

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

Results of Operations

	Net Revenues.	   Sutron Corporation revenues for the fiscal 
quarters ended March 31, 1997 and March 31, 1996 were $2,672,141 
and $1,136,655, respectively (an increase of 137%).  Sales to agencies 
of the federal government and other domestic customers increased 
147% to $2,459,599 in 1997 from $994,576 in 1996, an increase of 
$1,465,023.  First quarter revenues from contract's with the Air Force 
to deliver FMQ-13 digital wind sensor spares and repairs declined to 
$6,479 in 1997 from $118,590 in 1996, a decrease of $112,111.  
Revenues from international contracts and projects increased to 
$206,063 in 1997 from $23,489 in 1996, an increase of $182,574.  
The increases were primarily the result of increased sales of the 8400 
Digital Data Recorder and 8210 Data Recorder/Transmitter.

	Gross Profit.   The Company's gross profit in the quarter 
ended March 31, 1997 improved to $1,090,405 from $428,340 in 
the quarter ended March 31, 1996, an increase of $662,065.  The 
Company's gross profit as a percentage of sales increased to 41% in 
1997 from 38% in the prior year.  The increase in gross profit is 
attributed to increased sales volume in 1997.

	Selling, General And Administrative.   Selling, general and 
administrative costs increased 22% to $447,279 in the quarter ended 
March 31, 1997 from $365,331 279 in the quarter ended March 31, 
1996.  International selling expenses increased approximately $63,000 
as a result of increased activity, the addition of a new 
international sales manager in June 1996 and increased agent 
commissions.  Domestic selling expenses increased approximately 
$19,000 due to a marketing manager being hired in November 1996 
and increased activity.

	Research And Development.   Research and development 
expenses increased 115% to $215,598 279 in the quarter ended March 
31, 1997 from $100,402 279 in the quarter ended March 31, 1996.  
Research and development expenses as a percentage of sales decreased 
to 8% in 1997 from 9% in 1996.  The increase is due to a substantial 
increase in the level of effort needed to develop the Company's new 
hardware and software products.

	Interest Expenses.   Net interest expenses were $38,194 279 in 
the quarter ended March 31, 1997 as compared to $40,092 in the 
quarter ended March 31, 1996.  The decrease is attributed to reduced 
borrowings.

	The Company's backlog of orders at March 31, 1997 was 
approximately $2,198,000.  The Company anticipates that 95% of its 
March backlog will be shipped in 1997.

Liquidity and Capital Resources

	Cash increased $30,714 for the three months ended March 31, 
1997 from the fiscal year ended (FYE) December 31, 1996.  Total 
current assets increased to $4,410,038 at March 31, 1997 as compared 
to $4,099,405 at December 31, 1996.  Total current liabilities 
increased to $2,915,633 at March 31, 1997 as compared to $2,808,043 
at December 31, 1996.  The Company's current ratio increased to 
1.51:1 at March 31, 1997 from 1.46:1 at December 31, 1996.

	The Company's debt restructuring in December 1992 resulted in 
two notes with the bank being replaced by a revolving credit facility 
and a term note.  Borrowings on the revolving credit facility, which 
has a maximum limit of $1,000,000, are subject to a defined 
borrowing base composed primarily of certain accounts receivables 
and unbilled receivables.  Borrowings outstanding against the 
revolving credit facility as of March 31, 1997 and December 31, 1996 
were $980,000 and $905,000, respectively.  The current portion of the 
term note at March 31, 1997 and December 31, 1996 was $300,000, 
and the long term portion was $141,222 and $166,222, respectively.  
The revolving credit facility expires on July 31, 1997.

The credit facility and the term note bear interest at prime plus two
percent.  The credit facility and the term note are secured by accounts
receivable, inventory, and equipment.  The agreements contain restrictive
covenants pertaining to the maintenance of tangible net worth and operating
cash flows and limiting capital expenditures, acquisitions by the Company of
its own stock and other matters.  The agreements also restrict the payment of
dividends. 

Sutron believes that its working capital, cash flows from operations, and
existing and anticipated credit facilities will provide adequate resources
to finance the current needs of the Company's operations and to satisfy its
anticipated cash requirement for more than twelve months.  In addition,
Sutron will continue to consider and review other financing arrangements
which could be used to reduce the outstanding balance of both current and
long term debt.

<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 9, 1997                             Raul S. McQuivey  
Date                                  Raul S. McQuviey
                                         Principal Executive Officer

May 9, 1997                             Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer