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, 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 August 11, 1997.

<PAGE>
<TABLE>
                     PART I. - FINANCIAL INFORMATION
                          
                                                                                                  SUTRON CORPORATION
                                                                                                       BALANCE SHEETS
<CAPTION>
                                                                                                               (Unaudited)
                                    					June 30,     	December 31,
                                         	 			1997	         	1996
                                       					___________     ___________
<S>                                   				 <C>		<C>
Assets
Current Assets:
 Cash                                 				    $245,023	$78,970
 Accounts receivables       			             		    1,372,190	1,210,377
 Cost and estimated earnings in excess
    of billings						  906,450	628,344
 Inventory	                            			1,672,680	2,135,231
 Other	                                    				     79,788	46,482
                                       					___________     ___________
Total Current Asset	                    			4,276,131	4,099,404
				
 Property, Plant, and Equipment,
  less accumulated depreciation
  and amortization of $1,111,339
  and $1,072,273						       218,738	182,995
				
Investment                                 				        493,118	493,118
				
Deposits and Other Assets                 			         44,843	50,940
                                       					___________	__________
TOTAL ASSETS                        				  $5,032,830	$4,826,457

</TABLE>
<TABLE>

<CAPTION>
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                     				<C>		<C>
Current Liabilities:				
 Accounts payable	                    			$  630,400	$895,524
Accrued expenses                        				    754,221	457,065
 Accrued income taxes					    59,733	
 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		                        			    914,839	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                				   2,781,151	2,808,043
				
Long-term liabilities:		
 Installment note payable					        2,388	16,411
 Term notes payable                       				      171,895	166,222
							_________	__________
	Total liabilities					  2,955,434	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                  	 			   (247,729)	(489,344)
                                       					 ___________	___________
Total Stockholders' Equity                			        2,077,396	1,835,781

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                    			$ 5,032,830	    $ 4,826,457
<FN>
See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>
<TABLE>
                             SUTRON CORPORTION
                          STATEMENTS OF OPERATIONS
                               (Unaudited)
<CAPTION>
                                  			       Three Months Ended
                                             			June 30,
                                          		        1997	     1996
                                        			___________	___________
<S>                                    		 <C>		<C>
Revenues                              		 $  2,169,214	$    2,019,958
				
Cost of Goods Sold			      1,430,206	       1,153,230
                                    			___________	__________
Gross Profit                              		     739,008	       866,728
				
Research and Development Expenses	       195,906	        115,420
				
Selling, General, and				
 Administrative Expenses                  	        516,643	        382,457
                                       			___________	___________
Income (Loss) from Operations		      26,459	        368,851

Interest Expense                            		         38,178	          36,855
				
Income (Loss) before Provision  		____________	___________
 for Income Taxes			         (11,719)	         331,996
				
Provisions for Income Taxes		         (16,000)	0
                                 			____________	___________
Net Income (Loss)                      		$      4,281	$     331,996
				
Net Income (Loss) per Common Share        	              $.0	$             $.08
				
Weighted Average Number
 of Common Shares                        	       4,352,181	      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,
                                          		        1997	     1996
                                        			___________	___________
<S>                                    		 <C>		<C>
Revenues                              		 $  4,841,355	$   3,156,613
				
Cost of Goods Sold			3,011,942	      1,861,683
                                    			___________	__________
Gross Profit                              		1,829,413	    1,294,930
				
Research and Development Expenses	     411,503	       215,822
				
Selling, General, and				
 Administrative Expenses                  	      961,962	       747,787
                                       			___________	___________
Income (Loss) from Operations		    455,948	       331,321

Interest Expense                            		       76,372	          76,948
				
Income before Provision  			____________	___________
 for Income Taxes			        377,615	        254,373
				
Provisions for Income Taxes		         136,000 	                   0
                                 			____________	___________
Net Income	                      		$     241,615	$        254,373
				
Net Income (Loss) per Common Share	              $.06	$             $.06
				
Weighted Average Number
 of Common Shares                        	       4,352,181	      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,
                                             		1997    	       	1996
                                           		___________       ___________
<S>                                        		<C>		<C>  
Cash Flows from Operating Activities:			
Net income (loss)                       		$     241,615	$  254,373
Noncash items included in net income:
Depreciation and amortization                	        50,089	54,351
Loss on sale of asset                  		          1,961	0

  (Increase) Decrease in: 			
    Accounts receivables                      	      (176,909)	(59,890)
    Costs and estimated earnings in
      excess of contract billings             	     (263,010)	151,578
    Inventory                                 		     462,551	(589,109)
    Other current assets                       	        (33,305)	(3,516)
			
  Increase (Decrease) in:			
    Accounts payable                          	       (265,122)	19,542
    Accrued expenses                           	        356,887	139,810
    Contract billings in excess of costs
      and earnings				              0	(30,000)
    Estimated losses on uncompleted
     contracts                                 		               0	(4,706)
                                          		__________	__________
Net Cash Provided by Operating Activities  	       374,757	(67,567)
			
Cash Flows from Investing Activities:			
  Capital expenditures                         	       (91,808)	(29,382)
  Proceeds from sale of property and equip	         10,500	0
					___________       ___________
Net Cash Used in Investing Activities	       (81,308)	(29,382)
			
Cash Flows from Financing Activities:			
  Proceeds from line of credit		         9,839	245,000
  Payments on Term notes payable              	         (123,213)	(125,000)
  Payments on Installment notes payable	          (14,023)	(2,896)
  Payments on Stockholder loans		                    0	(10,000)
					___________	__________
Net Cash (Used) by Financing Activities	        (127,397)	107,104

Net Increase (Decrease) in Cash                  	          166,052	10,155
Cash and Cash Equivalents, January 1	         78,971	49,889
                                             		___________	__________
Cash and Cash Equivalents, June 30	$        245,023	$  60,044

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

<PAGE>

SUTRON CORPORATION

NOTES TO FINANCIAL STATEMENTS

June 30, 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 June 30 and 
December 31, is as follows:

<TABLE>
<CAPTION>

						June 30	December 31
						1997		1996
						<S>	<C>	   <C>
Direct and indirect costs, including overhead	$2,782,965	$2,162,549
Estimated losses, net				(88,836)		(1,095)
       Totals					$2,694,129	$2,161,454
			
Billings						$1,800,319	$1,534,215
Costs and estimated earnings in excess of billings	     894,905	628,334
Estimated losses on contracts in process		       (1,095)	(1,095)
       Totals					$2,694,129	$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 June 30 and December 31:

				1997		1996
Electronic components		$629,007	$702,216
Work in process			  680,267	1,232,440
Finished goods			  363,406	200,575
				$1,672,680	$2,135,231

(4)  ACCUMULATED DEPRECIATION AND AMORTIZATION
Accumulated depreciation and amortization at June 30 and 
December 31, is as follows:

				1997		1996
Furniture and equipment		$1,080,611	$1,041,005
Automotive equipment		         9,494	24,743
Leasehold improvements		         7,449	6,525
				$1,097,554	$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 June 30, 1997 and
December 31, 1996.

(6)  LINE OF CREDIT
The Company signed a loan and security agreement dated June 5, 
1997, with its new 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 $2,000,000 or the Company's borrowing base 
as determined by the bank.  Interest on the unpaid balance is payable 
monthly at prime plus one half percent.  The maturity date of the line
 is June 1, 1998, and the outstanding balance at June 30, 1997 and 
December 31, 1996 amounted to $914,839 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 
$343,008.  Principal payments under the previous agreement were 
restructured from $25,000 per month to $14,292 per month for 23 
months and 1 final payment on July 1, 1999 for the remaining unpaid 
balance.  Interest on the unpaid balance is payable monthly at prime
 plus three quarter percent.  The above referenced line of credit and 
term note payable are secured by substantially all assets of the Company.

(8)  STOCKHOLDER LOANS PAYABLE
At June 30, 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

Second Quarter 1997 Compared to 1996

Net Revenues.	  Sutron Corporation revenues for the 
fiscal quarters ended June 30, 1997 and June 30, 1996 were 
$2,169,214 and $2,019,958, respectively (an increase of 7%). 
 Sales to agencies of the federal government and other domestic 
customers improved 17% to $1,734,414 in 1997 from $1,481,869
 in 1996, an increase of $252,545.  Second quarter revenues from
 contract's with the Air Force to deliver FMQ-13 digital wind 
sensor spares and repairs increased to $169,771 in 1997 from
 $70,432 in 1996, an increase of $99,339.  Revenues from
 international contracts and projects decreased 43% to $265,029 
in 1997 from $467,657 in 1996, a decrease of $202,628.

Gross Profit. The Company's gross profit for the quarter
 ended June 30, 1997 decreased 16% to $739,008 from $866,728
 for June 30, 1996.  Gross profit as a percentage of sales decreased
 to 34% from 43% as a result of increased installation expenditures
 on the SIMEPAR contract in Brazil (installation was completed on
 July 2, 1997) and increased labor and material expenditures on
 the McClellan repair contracts.  

Selling, General And Administrative.  Selling, general and
 administrative costs increased $134,186 to $516,643 for the quarter
 ended June 30, 1997 from $382,457 for 1996.  The increase is due
 to the addition of three new sales and marketing positions, increased
 commissions to international agents and increased sales and 
marketing activities.

Research And Development.  Research and development 
expenses increased 70% to $195,906 in the quarter ended June 30,
 1997 from $115,420 in the quarter ended June 30, 1996.  Research 
and development expenses as a percentage of sales increased to 9%
 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.

Six months ended June 30, 1997 Compared to 1996

Net Revenues.  Sutron Corporation revenues for the six 
months ended June 30, 1997 and June 30, 1996 were $4,841,355 
and $3,156,613, respectively (an increase of 53%).  Sales to 
agencies of the federal government and other domestic customers
 improved 70% to $4,014,713 in 1997 from $2,354,854 in 1996, 
an increase of $1,659,859.  Revenues from contract's with the Air 
Force to deliver FMQ-13 digital wind sensor spares and repairs 
decreased to $176,250 in 1997 from $189,022 in 1996, a decrease
 of $12,772.  Revenues from international contracts and projects
 increased 6% to $650,392 in 1997 from $612,737 in 1996, an
 increase of $37,655.

Gross Profit.  The Company's gross profit for the six
 months ended June 30, 1997 increased 41% to $1,829,413 
from $1,294,930 for June 30, 1996.  Gross profit as a percentage
 of sales decreased to 38% from 41% as a result of increased
 installation expenditures on the SIMEPAR contract in Brazil 
(installation was completed on July 2, 1997) and increased labor 
and materials expenditures on the McClellan repair contracts.  

Selling, General And Administrative.  Selling, general and
 administrative costs increased $214,175 to $961,962 for the six 
months ended June 30, 1997 from $747,787 for the six months 
ended June 30, 1996.  The increase is due to the addition of three
 new sales and marketing positions, increased commissions to
 international agents and increased sales and marketing activities.

Research And Development.  Research and development
 expenses increased 91% to $411,503 for the six months ended
 June 30, 1997 from $215,822 in 1996.  Research and
 development expenses as a percentage of sales increased to 8% 
in 1997 from 7% 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 June 30, 1997 was 
approximately $2,501,000.  The Company anticipates that 95% 
of its June backlog will be shipped in 1997.


Liquidity and Capital Resources

Cash increased $166,052 for the six months ended 
June 30, 1997 from the fiscal year ended December 31, 1996.
  Total current assets increased to $4,276,131 at June 30, 1997 
as compared to $4,099,404 at December 31, 1996.  Total current 
liabilities decreased to $2,781,151 at June 30, 1997 as compared 
to $2,808,043 at December 31, 1996.  The Company's current
ratio increased to 1.54:1 at June 30, 1997 from 1.46:1 at 
December 31, 1996.

On June 5, 1997, the Company entered into a loan and 
security agreement with a new bank resulting in an increased
 revolving line of credit and a restructured term note.  The
 revolving credit facility has a maximum limit of $2,000,000 
compared with $1,000,000 previously.  Borrowings on the line
 are subject to a defined borrowing base composed of certain 
accounts receivables and inventory.  Under the previous 
facility, only certain accounts receivable were included in the
 borrowing base.  Principal payments on the term note were 
restructured from $25,000 per month to $14,292 per month 
for 23 months and 1 final payment on July 1, 1999 for the 
remaining unpaid balance.  Interest on the credit facility and
 the term note is payable monthly at prime plus a half percent 
and three quarter percent, respectively as compared with prime
plus two percent with the previous bank.

Borrowings outstanding against the revolving credit
 facility as of June 30, 1997 and December 31, 1996 were
 $914,839 and $905,000, respectively.  The current portion
 of the term note at June 30, 1997 and December 31, 1996 
was $171,504 and $300,000 and the long term portion was
 $171,895 and $166,222, respectively.  The revolving credit
 facility expires on June 1, 1998.

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. 

<PAGE>

PART II - OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

	On May 14, 1997, 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 1997.  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	3,945,540	--	3,250
	Thomas N. Keefer	3,945,540	--	3,250
	Daniel W. Farrell	3,945,540	--	3,250
	Glenn A. Conover	3,945,540	--	3,250
	Ronald C. Dodson	3,945,540	--	3,250

</TABLE>

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

For		Against		Abstain
3,929,740	18,500		550


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

August 11, 1997                             Sidney C. Hooper
Date                                     Sidney C. Hooper
                                         Principal Accounting Officer