<PAGE>
EXHIBIT 13
FIRST QUARTER INTERIM REPORT

To Our Shareholders:


     Net income for the first quarter was $170,000 on sales of $22,179,000. 
This compares to net income of $6,000 on sales of $23,223,000 in the same
quarter of last year.  Sales declined slightly, as we exited some lower-
margin business in anticipation of new business expected to yield higher
returns.  Profits continue to improve, reflecting our gains in operational
effectiveness.

     Our Electronics Division is about to enter production on a major new
program for McDATA Corporation.  The Division has designed a custom AC/DC
switchmode power supply, which will be used in a fibre-optic switch
application with IBM mainframe computers.  Under a sole-source agreement,
McDATA is IBM's exclusive supplier of ESCON Directors.

     All production assembly areas of our Power Distribution Products
Division have been converted to Demand Flow Technology.  The Division's
order-fill rates and response times now far exceed industry norms.  Core
sales are increasing at twice the market rate, as customers respond to our
improved levels of service.

     Our Aerospace Division received notice from the Boeing Company that we
have met their stringent quality standard, D1-9000A.  This provides a
quality framework for current and future programs with Boeing.

     The Aerospace Division successfully converted to an Oracle business
system this past quarter.  Intense employee training will continue at this
location through December.

     Overall, we are making steady progress and expect a good year.


Robert J. McKenna
Chairman and CEO


November 7, 1997
<PAGE>
<PAGE>
<TABLE>

ACME ELECTRIC CORPORATION
East Aurora, New York

The following tables set forth certain unaudited financial information for the
thirteen-week periods
ended September 27, 1997, and September 27, 1996 (in thousands, except for per
share data):

<CAPTION>
                                                               BALANCE SHEET

                                     Sept. 27, 1997     Sept. 27, 1996    
June 30, 1997
<S>                                   <C>                <C>               
<C> 
Current Assets....................      $29,087            $34,446           
$29,694
Fixed Assets and Other Net........       20,279             21,546            
20,450
  Total...........................      $49,366            $55,992           
$50,144

Current Liabilities...............      $11,607            $14,787           
$12,975
Long-Term Debt....................       21,085             25,451            
20,681
Shareholders' Equity..............       16,674             15,754            
16,488
  Total...........................      $49,366            $55,992           
$50,144

</TABLE>
<TABLE>
<CAPTION>
                                                     INCOME STATEMENT

                                        13 Weeks           13 Weeks        
Fiscal Year
                                         Ended              Ended             
Ended
                                     Sept. 27, 1997     Sept. 27, 1996    
June 30, 1997
<S>                                   <C>                <C>               
<C>
Net Sales.........................      $22,179            $23,223           
$94,062
Net Income........................          170                  6             
  136
Net Income Per Common Share.......         $.03               $.00             
 $.03
Weighted Average Number of Shares    
  Outstanding Used to Compute
  Income Per Common Share.........    5,052,498          4,957,548         
4,971,789

</TABLE>

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site at acmeelec.com