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, 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 September 30, 1997.

<PAGE>
<TABLE>
                     PART I. - FINANCIAL INFORMATION
                          
							SUTRON CORPORATION
                                                                                                       BALANCE SHEETS
<CAPTION>
                                     					(Unaudited)
                                    					September 30,     	December 31,
                                         	 				1997	         	1996
                                       					___________     ___________
<S>                                   					 <C>		<C>
Assets
Current Assets:
 Cash                                 					    $35,828	$78,970
 Accounts receivables       			  		   1,228,275	1,210,377
 Cost and estimated earnings in excess
    of billings						  690,698	628,344
 Inventory	                            				1,803,484	2,135,231
 Other	                                    				    82,532	46,482
                                       					___________     ___________
Total Current Asset	                    			3,840,817	4,099,404
				
 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,119,550
  and $1,072,273						       207,974	182,995
				
Investment                                 				        493,118	493,118
				
Deposits and Other Assets                 			         41,794	50,940
                                       					___________	__________
TOTAL ASSETS                        				  $4,583,703	$4,826,457


</TABLE>
<TABLE>

<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     				<C>		<C>
Current Liabilities:				
 Accounts payable	                    			$  567,702	$895,524
Accrued expenses                        				     656,255	457,065
 Accrued income taxes					       44,133	
 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		                        			    558,723	905,000
Shareholder loans payable	             		 		      80,000	90,000
Installment notes payable - current portion			        6,657	6,657
 Term notes payable- current portion                    		    171,504	300,000
							_________	__________
Total Current Liabilities                				   2,248,771	2,808,043
				
Long-term liabilities:		
 Installment note payable					        1,182	16,411
 Term notes payable                       				      143,311	166,222
							_________	__________
	Total liabilities					  2,393,264	2,990,676
				
Stockholders' Equity:				
 Common stock, $.01 par value,
 12,000,000 shares authorized;
 4,225,851 shares issued and outstanding in 1997
and in 1996						          43,540	43,540
 Additional paid in capital	             				     2,281,585	2,281,585
 Accumulated Deficit                  	 			      (134,686)	(489,344)
                                       					 ___________	___________
Total Stockholders' Equity                			      2,190,439	1,835,781

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    			$     4,583,703	    $ 4,826,457

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

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			September 30,
                                          			        1997	     1996
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 $  2,311,053	$    2,876,496
				
Cost of Goods Sold			     1,532,069	     1,726,369
                                    			___________	__________
Gross Profit                              		       778,984	     1,150,127
				
Research and Development Expenses	       169,882	       155,427
				
Selling, General, and				
 Administrative Expenses                  	        446,474	       520,850
                                       			___________	___________
Income (Loss) from Operations		         162,628	      473,850

Interest Expense                            		         23,386	         46,333
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			       139,242	         427,517
				
Provisions for Income Taxes		          26,200	          79,658
                                 			____________	___________
Net Income (Loss)                      		$    113,042	$     347,859
				
Net Income (Loss) per Common Share	           $.03	              $.08
				
Weighted Average Number
 of Common Shares                      	  	       4,396,357	      4,263,511
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Nine Months Ended
                                             			September 30,
                                          			        1997	     1996
                                        			___________	___________
<S>                                    			 <C>		<C>
Revenues                              		 $  7,152,408	$   6,033,109
				
Cost of Goods Sold			    4,544,011	    3,588,052
                                    			___________	__________
Gross Profit                              		      2,608,397	    2,445,057
				
Research and Development Expenses	    581,385	      371,249
				
Selling, General, and				
 Administrative Expenses                  	      1,410,397	    1,268,637
                                       			___________	___________
Income (Loss) from Operations		    616,615	    805,171

Interest Expense                            		        99,758	    123,281
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			       516,857	     681,890
				
Provisions for Income Taxes		         162,200	           79,658
                                 			____________	___________
Net Income (Loss)                      		$       354,859	$     602,232
				
Net Income (Loss) per Common Share	              $.08	              $.14
				
Weighted Average Number
 of Common Shares          		              	       4,389,808	      4,235,980
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                                                                      SUTRON CORPORTION
                                                            STATEMENTS OF CASH FLOWS
                                                                              (Unaudited)
<CAPTION>
                                        						      Nine Months Ended
                                                						September 30,
                                             					1997    	       	1996
                                           					___________       ___________
<S>                                        					<C>		<C>  

Cash Flows from Operating Activities:			
  Net income (loss)						 $  354,657	$  602,232
  Noncash items included in net income (loss):			
    Depreciation and amortization					     76,782	79,393
    Loss on sale of assets						       1,961
			
    (Increase) Decrease in:			
      Accounts receivables						   (17,898)	444,639
      Costs and estimated earnings in excess of contract 			
        billings							    (62,354)	(349,041)
      Inventory							     331,747	(818,527)
      Prepaid items and other					      (26,904)	22,371
			
    Increase (Decrease) in:			
      Accounts payable						  (327,822)	168,678
      Accrued expenses						    243,323	200,859
      Contract billings in excess of costs and earnings			             0	(30,000)	
      Estimated losses on uncompleted contracts			             0	(4,706)
			
Net Cash Provided (Used) by Operating Activities			   573,492	315,898
			
Cash Flows from Investing Activities:			
     Purchase of property and equipment				    (47,049)	(47,049)
Net Cash Used in Investing Activities				    (47,049)	(47,049)
			
Cash Flows from Financing Activities:			
  Payments on line of credit					     (346,277)	(5,000)
Payments on installment loans					     (15,229)	(4,386)
  Payments on stockholder loans					                 0	(10,000)	
  Payments on term notes payable					     (151,407)	(175,000)
			
Net Cash (Used) Provided by Financing Activities			(512,913)	(194,386)
			
Net Increase (Decrease) in Cash and Cash Equivalents		      (43,142)	74,463
Cash and Cash Equivalents, January 1				       78,970	49,899
Cash and Cash Equivalents, September 30				      $35,828	$124,352

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

<PAGE>

SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

September 30, 1997

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 1995 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

Earnings per share is computed on the basis of the weighted average number 
of common shares outstanding plus the effect of outstanding stock options
 using the "treasury stock" method.  


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

Results of Operations

Third Quarter 1997 Compared to 1996

Net Revenues.  Sutron Corporation revenues for the quarters ended 
September 30, 1997 and September 30, 1996 were $2,311,053 and 
$2,876,496, respectively (a decrease of 20%).  Sales to agencies of
 the federal government and  other domestic customers improved 16%
 to $1,786,588 in 1997 from $1,538,794 in 1996, an increase of $247,793.
 Third quarter revenues from contract's with the Air Force to deliver
 FMQ-13 digital wind sensor spares and repairs increased to $186,724 in
 1997 from $50,668 in 1996, an increase of $136,056.  Revenues from
 international contracts and projects decreased 74% to $337,741 in 1997
 from $1,287,033 in 1996, a decrease of $949,292.

Gross Profit.  The Company's gross profit for the quarter ended September
 30, 1997 decreased 33% to $778,984 from $1,150,127 for September 30, 
1996.  The decrease in gross profit is attributed to installation problems 
on our  SIMEPAR contract  in Brazil, test problems relating to an Air Force
 repair contract for FMQ-13 wind  sensors and reduced sales volume.

Selling, General And Administrative.  Selling, general and administrative costs
 decreased $74,376 to $446,474 for the quarter ended September 30, 1997 from
$520,850 in 1996.  The decrease is primarily due to reduced agent commissions 
relating to the decrease in international sales.

Research And Development.  Research and development expenses increased
 $14,020  to $169,882 for the quarter ended September 30, 1997 from $155,427 
in 1996.  Research and development expenses as a percentage of sales increased
 to 7% in 1997  from 5% in 1996.  The increase is due to a substantial increase
 in product development  activities.  The Company is using outside research 
and development companies to assist in new product development.

Nine months ended September 30, 1997 Compared to 1996

Net Revenues.  Sutron Corporation revenues for the nine months ended 
September 30, 1997 and September 30, 1996 were $7,152,408 and 
$6,033,109, respectively (an increase of 19%).  Sales to agencies of
 the federal government and  other domestic customers improved 49% 
to $5,801,301 in 1997 from $3,893,648 in 1996, an increase of $1,907,652. 
Revenues from contracts with the Air Force to deliver FMQ-13 digital wind 
sensor spares and repairs increased to $362,974 in 1997 from $239,690 in 
1996, an increase of $123,284.  Revenues from international contracts 
and projects decreased 48% to $988,133 in 1997 from $1,899,770 in 1996, 
a decrease of  $911,637.

Gross Profit.  The Company's gross profit for the nine months ended
 September 30, 1997 increased 6% to $2,608,397 from $2,445,057 for
 September 30, 1996.  Gross profit as a percentage of sales declined to 36%
 in 1997 from 41% in 1996 relating to installation problems on our SIMEPAR 
contract in Brazil and test problems relating to an Air Force repair contract
 for FMQ-13 wind sensors.

Selling, General And Administrative.  Selling, general and administrative
 costs increased $141,760 to $1,410,397 for the nine months ended September 
30, 1997 from $1,268,637 for the nine months ended September 30, 1996.  The
 increase is due to adding an international sales manager in mid 1996, a
 marketing manager in late 1996, and higher international selling expenses.

Research And Development.  Research and development expenses
 increased 57% to $581,385 for the nine months ended September 30, 1997 
from $371,249 in 1996.  Research and development expenses as a percentage 
of sales increased to 8% in 1997 from 6% in 1996.  The increase is due to a 
substantial increase in product development activities.  The Company is using
 outside research and development companies to assist in new product 
development.

The Company's backlog of orders at September 30, 1997 was
 approximately $2,762,000.  The Company anticipates that 85% of its 
September backlog will be shipped in 1997.

Liquidity and Capital Resources

Cash and cash equivalents decreased to $35,828 at September 30, 1997, 
compared to $78,970 at December 31, 1996.

The ratio of current assets to current liabilities was 1.7 as of 
September 30, 1997, compared to 1.46 as of December 31, 1996.  Working 
capital increased $300,685 to $1,592,046 million at the end of the third
 quarter of fiscal 1997 compared to $1,291,361 at the end of fiscal 1996.

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 1997.

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, 1996.

<PAGE>

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)



November 14, 1997                             Raul S. McQuivey  
Date                                  Raul S. McQuivey
                                         Principal Executive Officer

November 14, 1997                             Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer