EXHIBIT 13

ACME ELECTRIC CORPORATION
INTERIM REPORT 3
39 WEEKS ENDED MARCH 28, 1998


To Our Shareholders:

    Third quarter net income increased to $585,000 from $224,000 in the
same quarter last year.  And, year-to-date earnings through three quarters
are $1,253,000, compared to $314,000 in F/Y '97.  The progress continues.
    Our Aerospace Division was awarded a contract to develop the
Integrated Standby Flight Display dedicated battery back-up system for
Boeing.  This new system will initially be offered on the 737 and 767 model
aircraft.  Production is expected to begin in November.
    Since early January, we have had a number of customers in the high-end
computer and telecommunications markets push back scheduled shipments for
custom power supplies.  They have indicated there is a softening in demand
for their products, related to the economic troubles in the Far East.  At
the moment, improvements are not expected until early fall.  We have made
the necessary cut backs to our business and will monitor this situation
closely.
    This quarter we successfully completed the conversion of all of our
businesses to Oracle client/server business application and database
software from our legacy mainframe-based system.  This change will enable
us to be far more responsive to our customers and vendors.  Much hard work
went into this conversion.  My sincere thanks to all involved.
    Overall, we continue to make good progress and expect a much improved
fiscal year.

Robert J. McKenna
Chairman and CEO


May 1, 1998<PAGE>
ACME ELECTRIC CORPORATION
East Aurora, New York

The following tables set forth certain unaudited financial information for
the thirty-nine-week periods ended March 28, 1998, and March 28, 1997 (in
thousands, except for per share data):

                                              BALANCE SHEET
                                              -------------
                                     03/38/98     03/28/98     06/30/97
                                     --------     --------     --------

Current Assets.................       $27,401      $33,939      $29,694
Fixed Assets and Other - Net...        19,712       19,065       20,450
                                       ------       ------       ------
  Total........................       $47,113      $53,004      $50,144
                                       ======       ======       ======

Current Liabilities............       $11,370      $13,769      $12,975
Long-Term Debt.................        17,953       23,129       20,681
Shareholders' Equity...........        17,790       16,106       16,488
                                       ------       ------       ------
  Total........................       $47,113      $53,004      $50,144
                                       ======       ======       ======

                                    INCOME STATEMENT
                                    ----------------
                      13 Weeks  13 Weeks  39 Weeks  39 Weeks  Fiscal Year
                       Ended     Ended     Ended     Ended       Ended
                      03/28/98  03/28/97  03/28/98  03/28/97   06/30/97
                      --------  --------  --------  --------   --------

Net Sales........      $22,352   $24,006   $67,283   $70,707    $94,062
Net Income.......          585       224     1,253       314        136
Net Income Per Common Share
  (Basic and Diluted)     $.12      $.04      $.25      $.06       $.03
Weighted Average Number of Shares    
  Outstanding Used to Compute
  Income Per Common Share:
  Basic..........        5,048     4,956     5,045     4,951      4,962
  Diluted........        5,060     4,970     5,059     4,964      4,972


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