UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended                         Commission File No.
   March 31, 1998                                  0-15443

  THERAGENICS CORPORATION
       (Exact name of registrant as specified in its charter)


        Delaware                           58-1528626
(State of incorporation)      (I.R.S. Employer Identification Number)



       5325 Oakbrook Parkway
        Norcross, Georgia                             30093
(Address of principal executive offices)               (Zip Code)



Registrant's telephone number, including area code: (770) 381-8338

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

As of May 12,  1998,  the  aggregate  market  value of the  common  stock of the
registrant held by  non-affiliates  of the registrant as determined by reference
to the closing price of Common Stock as reported on the Nasdaq  National  Market
System,  was  $765,925,965.  As of May 12,  1998 the  number of shares of common
stock, $.005 par value, outstanding was 29,178,132.


<PAGE>





                                                THERAGENICS CORPORATION

                                                  TABLE OF CONTENTS



PART I  - FINANCIAL INFORMATION:

  ITEM 1.  FINANCIAL STATEMENTS                                         Page No.

          Balance Sheets - December 31, 1997 and March 31, 1998
          (unaudited)........................................................ 3

          Statements of Earnings for the Three Months Ended
          March 31, 1997 and 1998 (unaudited)................................ 5

          Statements of Cash Flows for the Three Months Ended
          March 31, 1997 and 1998 (unaudited)................................ 6

          Statements of Changes in Stockholders' Equity for the 
          Three Months Ended March31, 1998 (unaudited)....................... 7

          Notes to Financial Statements...................................... 8

  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
          CONDITION AND RESULTS OF OPERATIONS................................ 9

PART II - OTHER INFORMATION

  ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K...................................12

SIGNATURE....................................................................13


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

                             THERAGENICS CORPORATION
                                 BALANCE SHEETS
                      DECEMBER 31, 1997 AND MARCH 31, 1998

                                     ASSETS

<TABLE>

<CAPTION>
                                                       December 31,               March 31,
                                                          1997                      1998                    
                                                      ------------             ------------             
                                                                                (Unaudited)
<S>                                                  <C>                       <C>   
CURRENT ASSETS
   Cash and short-term investments                    $ 30,161,614             $ 24,201,105
   Marketable Securities                                 8,391,807                8,391,807
   Trade accounts receivable, less
     allowance of $65,446 in 1997
     and $84,480 at March 31, 1998.                      2,925,390                3,580,036
   Inventories                                             433,873                  548,666
   Prepaid expenses and other current assets               160,620                  121,899
                                                      -------------             ------------
     TOTAL CURRENT ASSETS                               42,073,304               36,843,513

PROPERTY AND EQUIPMENT
   Building                                              3,333,728                3,333,728
   Leasehold improvement                                   138,978                  138,978
   Machinery and equipment                              14,698,623               14,986,600
   Office furniture and equipment                           66,464                   95,400
                                                     --------------             ------------
                                                        18,237,793               18,554,706
   Less accumulated depreciation
         and amortization                               (4,695,669)             ( 5,100,844)
                                                        13,542,124               13,453,862
   Land                                                    525,754                  525,754
   Construction in progress (Note B)                    14,917,788               27,774,184
                                                     -------------              ------------
     TOTAL PROPERTY & EQUIPMENT                         28,985,666               41,753,800

OTHER ASSETS
   Patent costs                                             71,836                   69,623
   Other                                                     9,503                    9,251
                                                     -------------              ------------
         TOTAL OTHER ASSETS                                 81,339                   78,874  
                                                         
       TOTAL ASSETS                                   $ 71,140,309             $ 78,676,187

                                                     =============              ============

</TABLE>
<PAGE>


                             THERAGENICS CORPORATION

                                 BALANCE SHEETS
                                   (Continued)

                      DECEMBER 31, 1997 AND MARCH 31, 1998

                      LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>

                                                         December 31,       March 31,
                                                            1997              1998
                                                      --------------       ---------------
                                                                             (Unaudited)
<S>                                                   <C>                     <C> 
CURRENT LIABILITIES:
  Trade accounts payable                                1,435,154               4,642,502
  Accrued salaries, wages, and payroll taxes              689,610                 356,416
  Income taxes payable                                    845,364               1,881,522
  Other current liabilities                               137,097                 296,230
                                                       -----------             -----------
    TOTAL CURRENT LIABILITIES                           3,107,225               7,176,670

LONG TERM LIABILITIES:
  Deferred income taxes                                 1,000,000               1,075,000

STOCKHOLDERS' EQUITY:
  Common stock, $.005 par value,
  50,000,000 share authorized;  29,075,682 
  and 29,091,812 shares had been issued
  as of December 31, 1997 and March 31, 1998, 
  respectively. (Note C)

                                                          145,378                  145,459
  Additional paid-in capital                           55,740,366               55,831,162
  Retained earnings                                    11,147,340               14,447,896
                                                      ------------             ------------
    TOTAL STOCKHOLDERS' EQUITY                         67,033,084               70,424,517
                                                      ------------             ------------

      TOTAL LIABILITIES/
      STOCKHOLDERS' EQUITY                            $71,140,309             $ 78,676,187
                                                      ============             ============


</TABLE>



         The accompanying notes are an integral part of these statements.


<PAGE>


                             THERAGENICS CORPORATION

                             STATEMENTS OF EARNINGS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1998
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                        Three Months
                                                        Ended March 31
                                                     1997             1998
<S>                                             <C>              <C>    
                                                -------------     -----------
REVENUES:
 Product sales................                   $ 4,082,358     $    15,962
 Product sales - affiliate....                            --       8,239,985
 Licensing fee................                        25,000          25,000
                                                -------------     -----------
                                                   4,107,358       8,280,947
COSTS & EXPENSES:
 Cost of sales................                     1,145,361       2,188,435
 Selling, general and
   administrative.............                     1,185,128       1,350,947
 Research and development.....                         4,365          41,411
                                                -------------     -----------
                                                   2,334,854       3,580,793
OTHER INCOME (EXPENSE):
 Interest income..............                        13,231         450,712
 Interest expense.............                       ( 6,629)        ( 2,684)
 Other........................                         9,595           8,937
                                                -------------     -----------
                                                      16,197         456,965
NET EARNINGS BEFORE
 INCOME TAXES.................                   $ 1,788,701      $5,157,119

 Income tax expense...........                       679,707       1,856,563

NET EARNINGS..................                   $ 1,108,994     $ 3,300,556
                                                =============     ===========

NET EARNINGS PER COMMON SHARE
(Note D)
  Basic.......................                   $       .05     $       .11
                                                =============     ===========
  Diluted.....................                   $       .04     $       .11
                                                =============     ===========
WEIGHTED AVERAGE SHARES
  Basic.......................                    23,671,706      29,087,936
                                                =============     ===========
  Diluted.....................                    24,762,704      30,352,859
                                                =============     ===========


</TABLE>


The accompanying notes are an integral part of these statements.



<PAGE>


                             THERAGENICS CORPORATION

                            STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1998
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                  Three Months
                                                                 Ended March 31,
                                                                1997            1998
<S>                                                        <C>               <C>   
                                                           ------------      ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net earnings.......................................       $ 1,108,994       $ 3,300,556
  Adjustments to reconcile net earnings
 to net cash provided by operating
 activities:
   Deferred income taxes............................                --            75,000
   Depreciation and amortization....................           348,446           407,388
   Changes in assets and liabilities:
   Accounts receivable..............................         ( 485,731)        ( 654,646)
   Inventories......................................         (  83,495)        ( 114,793)
   Prepaid expenses and other current assets........         (  66,495)           38,721
   Deferred tax asset...............................           360,000                --
   Other assets.....................................                --               252
   Trade accounts payable...........................           262,559         3,207,348
   Accrued salaries, wages and payroll taxes........         ( 296,471)        ( 333,194)
   Income taxes payable.............................            69,568         1,036,158
   Other current liabilities........................           114,081           159,133
                                                            -----------       -----------
      Total Adjustments.............................           222,462         3,821,367
                                                            -----------       -----------
        Net cash provided by
        operating activities........................         1,331,456         7,121,923

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases and construction of property
   and equipment..................................          (3,385,788)      (13,173,309)
                                                            -----------       -----------
        Net cash used by investing
        activities..................................        (3,385,788)      (13,173,309)


CASH FLOWS FROM FINANCING ACTIVITIES:
   Net borrowing (repayment) of revolving line
    of credit.......................................         2,167,831                --
  Exercise of stock options and warrants (net)......           346,551            90,877
  Debt issue costs..................................         (   2,130)               --
  Capital issue costs...............................         ( 137,903)               --
                                                           ------------       -----------
        Net cash (used) provided by
        financing activities........................         2,374,349            90,877

NET INCREASE (DECREASE) IN CASH AND
  SHORT-TERM INVESTMENTS............................           320,017       ( 5,960,509)
CASH AND SHORT-TERM INVESTMENTS AT
  BEGINNING OF PERIOD...............................         2,986,123        30,161,614
                                                           ------------       -----------
CASH AND SHORT-TERM INVESTMENTS AT
  END OF PERIOD.....................................       $ 3,306,140       $24,201,105
                                                           ============       ===========
</TABLE>

The  accompanying  notes are an integral part of these statements.


<PAGE>


                             THERAGENICS CORPORATION
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED MARCH 31, 1998
                                   (Unaudited)
<TABLE>
<CAPTION>



                                                   Common Stock           Additional
                                              Number of    Par Value       Paid-in       Retained
                                               shares        $.005         Capital       Earnings        Total
<S>                                        <C>            <C>           <C>             <C>           <C>

BALANCE, December 31, 1997........         29,075,682     $ 145,378     $55,740,366     $11,147,340   $67,033,084
 Exercise of stock options........             16,130            81          35,572                        35,653
 Income tax benefit from stock
  options exercised...............                                           55,224                        55,224
 Net earnings for the period......                                                     
                                                                                          3,300,556     3,300,556
                 

BALANCE, March 31, 1998...........         29,091,812     $ 145,459     $55,831,162     $14,447,896   $70,424,517
                                         
</TABLE>

The  accompanying  notes are an integral part of these statements.



<PAGE>


THERAGENICS CORPORATION

NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(Unaudited)



NOTE A - BASIS OF PRESENTATION

The interim  financial  statements  included  herein  have been  prepared by the
Company without audit. These statements  reflect all adjustments,  which are, in
the opinion of management, necessary to present fairly the financial position as
of March 31, 1998,  and the results of  operations,  cash flows,  and changes in
shareholders equity for the three months ended March 31, 1997 and 1998. All such
adjustments are of a normal recurring nature.  Certain  information and footnote
disclosures  normally  included in financial  statements  prepared in accordance
with generally  accepted  accounting  principles have been condensed or omitted.
The Company  believes that the  disclosures are adequate to make the information
presented not misleading.  It is suggested that these  financial  statements and
notes be read in conjunction with the audited financial statements and notes for
the year  ended  December  31,  1997,  included  in the Form  10-K  filed by the
Company.

NOTE B - CONSTRUCTION IN PROGRESS

The $27.8  million  March 31,  1998  ending  balance in this  account  primarily
represents  progress  payments on Theragenics'  most recent  capacity  expansion
projects.  The expansion projects,  which are expected to cost approximately $58
million,  include a  manufacturing  facility and four cyclotrons for the Phase I
project and six cyclotrons  with  supporting  facilities  and an  administrative
facility for the Phase II expansion project.

NOTE C - STOCK SPLIT

On March 16,  1998,  the  Company  announced  a  two-for-one  stock  split 
effected  in the form of a 100%  stock  dividend  payable  on April 15,  1998 to
shareholders of record at the close of business on March 31, 1998. All share and
per share amounts have been restated for all periods presented to give effect to
the stock split.
<PAGE>

Item 2. - Management's Discussion and Analysis of
          Financial Condition and Results of Operations

Results of Operations

Revenues  -  Revenues  for the  quarter  ended  March  31,  1998 were up 100% or
$4,173,589 higher than the first quarter of 1997. This increase was attributable
to the  increase  in sales of  TheraSeed(R),  an  implantable  radiation  device
predominantly used in the treatment of prostate cancer. The Company's ability to
deliver production volume increases,  facilitated  through additional  cyclotron
and assembly capacity, represented the primary driver for revenue growth for the
first quarter of 1998 compared to the first quarter of 1997.  Marketing  efforts
along with increased patient awareness of prostate cancer treatment options have
contributed to the continued sales acceleration.

Cost and  Expenses - First  quarter 1998 cost of sales  increased  almost 91% or
$1,043,074  over the same period last year reflecting the 100% increase in sales
for the same  period.  As a percent  of sales,  cost of product  sales  actually
decreased  slightly in the first quarter of 1998 to 26.4% from 27.9% in the same
period of 1997 as a result of economies of scale.  The Company's fixed cost base
increased as  depreciation  and other fixed expenses  associated  with cyclotron
number four were  experienced for the entire first quarter of 1998 as opposed to
only  part of the  same  period  of  1997.  Compensation  and  related  expenses
associated  with  product  sales  increased  100%  by  approximately   $375,000.
Compensation  levels were brought in line with the marketplace and benefits were
enhanced in an effort to retain and  attract  qualified  employees.  The Company
will continue to strive to offer competitive  compensation and benefits in order
to attract and retain qualified employees required by our expected growth.

Selling,  General & Administrative  ("S,G&A")  expenses for the first quarter of
1998  increased  14% or $165,819  over S,G&A  expenses for the first  quarter of
1997. Legal and other professional fees increased primarily as a result of legal
action  initiated by the Company claiming trade secret misappropriation by a 
small company founded by former  employees.  Other S,G&A expenses increased as 
compensation and related expenses,  office equipment purchases  and upgrades, 
and general supplies and expenses grew in response to the the volume  increase 
of workload  associated  with  increased  sales.  These increases were offset 
by S,G&A expenses  associated  with sales and marketing in the first  quarter 
of 1998 which  actually  decreased  to one third of the total sales and 
marketing  expenses  experienced in the same period in 1997.  This was
achieved as the Company has been able to reduce its investments in its sales and
marketing  organization  due to the sales and marketing  agreement  entered into
with Indigo Medical, Inc., a subsidiary of Johnson & Johnson.
<PAGE>

Research and development expenses increased approximately $37,000 as a result of
efforts to improve proprietary  production  processes.  Management may choose to
accelerate  efforts  in  this  area  in  the  future  when  and  if  appropriate
opportunities are realized.

Other  income and expense for the first  quarter of this year was  approximately
$440,000 more than the same period last year. This increase was primarily due to
interest income  generated by higher cash balances secured through the secondary
stock offering completed in April, 1997. These funds have been and will continue
to be used to fund the Company's current and future expansion programs. As these
funds are utilized for expansion,  management  expects other income to return to
levels consistent with historical amounts.

Liquidy and Capital Resources

The Company had cash,  cash  equivalents  and  short-term  investments  of $24.2
million on March 31, 1998 compared to $30.2 million on December 31, 1997.

Operations  generated  $7.1 million in cash as net earnings  accounted  for $3.3
million of this number.  Other items  included in the increased cash provided by
operating  activities include an increase of approximately $3.0 million in trade
accounts  payable  due to  payables  associated  with  construction  of the  new
manufacturing  facility.  Additional  supplements  include  higher  income taxes
payable  ($1.0  million) due to an increase in taxable  income and  depreciation
($.4 million).  These increases in cash were partially  offset by an increase in
receivables   reflecting  higher  sales  and  a  decrease  in  accrued  salaries
reflecting the payment of bonuses.

During the first  quarter of 1998,  the Company used $12.9  million for progress
payments on the Company's current capacity  expansion  projects.  Phase I of the
expansion  project,  which management expects to cost approximately $28 million,
includes a manufacturing  facility and four cyclotrons.  The project is expected
to be  completed  by  year-end.  Spending  to  date  on  the  project  has  been
approximately  $22  million.  Spending  to date of  approximately  $5.5  million
(approximately  $3.0 million for the first  quarter)  occurred for an additional
project including six additional  cyclotrons and supporting  facilities which is
currently under way. Also,  construction of an  administrative  facility at this
same site is expected to begin by late second to early third quarter.  These two
projects are expected to total approximately $30 million.  Less than $.5 million
has been spent on other capital projects.
<PAGE>


Net cash  provided by  financing  activities  of  approximately  $90.9  thousand
represents additional paid-in capital from the exercise of stock options.

Management  believes  that  the  Company's  current  cash  balances,   financing
arrangements  and anticipated cash flow from operations are adequate to meet the
financing needs of the Company through 1998. In the event  additional  financing
becomes  necessary,  management  may choose to raise those funds  through  other
forms of financing as appropriate.

This document contains certain forward-looking  statements within the meaning of
the  Private  Securities  Litigation  Reform  Act  of  1995  including,  without
limitation,  statements regarding possible benefits associated with the possible
alliance with Indigo Medical Inc., future costs of sales, S,G&A, expenses, 
expansion plans and the sufficiency of the Company's liquidity and capital 
resources. From time to time, the  Company  may also make other forward-looking
statements relating to such matters as well as anticipated financial 
performance,  business  prospects, technological  developments,  research and  
development  activities  and similar matters.  These forward-looking statements 
are  subject  to  certain  risks, uncertainties  and other  factors  which  
could cause  actual  results to differ materially  from  those   anticipated,   
including  risks  associated  with  the management  of growth,  government  
regulation of the  therapeutic  radiological pharmaceutical and device business,
dependence on health care professionals, and competition from conventional and 
newly developed methods of treating  localized cancer.



<PAGE>




PART II - OTHER INFORMATION

Item 6.- Exhibits and Reports on Form 8-K


         (a)       Exhibit 27 - Financial Data Schedule

         (b)       Reports on Form 8-K.

                   No reports on For 8-K were filed during the quarter ended 
                   March 31, 1998.




<PAGE>




                                    SIGNATURE

Pursuant  to the  requirements  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.



                                    REGISTRANT:

                                    THERAGENICS CORPORATION


                                    By:  /s/ M. Christine Jacobs
                                         -----------------------
                                         M. Christine Jacobs
                                         President


                                         /s/ Bruce W. Smith
                                         ------------------
                                         Bruce W. Smith
                                         Treasurer and
                                         Chief Financial Officer



Dated: May 15, 1998