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

                                 FORM 10-Q

     (Mark One)
(X)   Quarterly Report Under Section 13 or 15(D) of The Securities Exchange
      Act of 1934 For Quarter Ended June 30, 2001

                       OR

(   ) Transition Report Pursuant to Section 13 or 15(d) of The  Securities
      Exchange Act of 1934


                       Commission File Number 0-275


                              Allen Organ Company
          (Exact name of registrant as specified in its charter)



        Pennsylvania                       23-1263194
  (State of Incorporation)      (I.R.S. Employer Identification No.)



150 Locust Street, P. O. Box 36, Macungie, Pennsylvania      18062-0036
    (Address of principal executive offices)                 (Zip Code)



Registrant's telephone number, including area code         610-966-2200


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_____

Number of shares outstanding of each of the issuer's classes of common
stock, as of August 7, 2001:

                    Class A - Voting          84,002 shares
                    Class B - Non-voting   1,086,457 shares
<PAGE>
                            ALLEN ORGAN COMPANY

                                   INDEX


Part I  Financial Information

   Item 1.Financial Statements
          Consolidated Condensed Statements of Income for the three and
           six months ended June 30, 2001 and 2000

          Consolidated Condensed Balance Sheets at June 30, 2001 and
           December 31, 2000

          Consolidated Condensed Statements of Cash Flows for the three
           and six months ended June 30, 2001 and 2000

          Notes to Consolidated Condensed Financial Statements

   Item 2.Management's Discussion and Analysis of Financial Condition and
           Results of Operations
   Item 3.Quantitative and Qualitative Disclosures About Market Risk

Part II Other Information

   Item 4.Submission of Matters to a Vote of Security Holders
   Item 6.Exhibits and Reports on Form 8-K

   Signatures
<PAGE>
PART I  FINANCIAL INFORMATION
   ITEM 1.FINANCIAL STATEMENTS

                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                (Unaudited)

                         For the 3 Months Ended:      For the 6 Months Ended:
                         6/30/2001     6/30/2000       6/30/2001      6/30/2000

Net Sales              $15,119,294   $18,931,735     $28,378,692    $35,739,767

Cost and Expenses
 Costs of sales         11,229,132    11,180,040      21,106,679     21,034,444
 Selling, general and
  administrative         3,921,633     4,186,916       8,221,905      8,443,633
 Research and
  development            2,158,786     1,777,753       4,355,094      3,464,808
 Costs to close
  Southampton plant        530,000         --            530,000          --
 Impairment of VIR,
  Inc. goodwill              --            --          1,400,000          --

   Total Costs and
    Expenses            17,839,551    17,144,709      35,613,678     32,942,885

(Loss) Income from
 Operations             (2,720,257)    1,787,026      (7,234,986)     2,796,882

Other income (expense)
 Investment and other
  income                   355,429       258,267         709,572        525,662
 Interest expense         (164,055)        --           (315,084)         --
 Minority interests in
  consolidated
  subsidiaries             (83,398)          (98)        (33,275)        34,503

 Total Other Income
  and Expense              107,976       258,169         361,213        560,165

(Loss) Income Before
 Taxes                  (2,612,281)    2,045,195      (6,873,773)     3,357,047

Income Tax (Benefit)
 Provision              (1,047,000)      689,000      (2,683,000)     1,131,000

Net (Loss) Income      $(1,565,281)   $1,356,195     $(4,190,773)    $2,226,047

Basic and Diluted
 (Loss) Earnings
  Per Share                $ (1.34)       $ 1.16         $ (3.58)        $ 1.90

Weighted Average Shares
 Used in Per Share
 Calculation             1,170,528     1,170,621       1,170,528      1,170,621

Dividends Per Share
 - Cash                     $ 0.14        $ 0.14          $ 0.28         $ 0.28

Total Comprehensive
 (Loss) Income         $(1,661,534)   $1,234,119     $(4,388,038)    $2,203,536


                               See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED BALANCE SHEETS
ASSETS                                               June 30, 2001 Dec 31, 2000
                                                       (Unaudited)   (Audited)
Current Assets
  Cash                                                  $1,344,730   $2,712,368
  Investments Including Accrued Interest                11,972,980   24,694,377
  Accounts Receivable, net of reserves of
   $408,508 and $428,791, respectively                   8,002,320   10,285,659
  Inventories:
     Raw Materials                                       6,579,468    7,684,892
     Work in Process                                     6,098,748    6,172,954
     Finished Goods                                      5,984,675    5,950,327
      Total Inventories                                 18,662,891   19,808,173
  Income Taxes Prepaid and Receivable                    2,997,715       13,972
  Prepaid Expenses                                         705,082      304,342
  Deferred Income Tax Benefits                           1,208,800    1,094,701
     Total Current Assets                               44,894,518   58,913,592
Property, Plant and Equipment                           26,852,487   25,861,781
  Less Accumulated Depreciation                        (14,594,796) (13,338,648)
     Total Property, Plant and Equipment                12,257,691   12,523,133
Other Assets
  Prepaid Pension Costs                                    537,669      506,702
  Inventory Held for Future Service                        776,525      690,657
  Note Receivable                                        1,955,779    1,556,721
  Cash Value of Life Insurance                           2,034,867    2,034,867
  Deferred Income Tax Benefits                             254,476      398,476
  Goodwill, net                                          2,482,367    4,165,002
  Other Assets                                              18,592       18,592
     Total Other Assets                                  8,060,275    9,371,017
     Total Assets                                      $65,212,484  $80,807,742

                  LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current Liabilities
  Notes Payable - Bank                                 $     --     $ 8,700,000
  Accounts Payable                                       1,879,353    3,448,119
  Other Accrued Expenses                                 2,151,951    2,816,102
  Customer Deposits                                      2,992,903    2,991,628
     Total Current Liabilities                           7,024,207   17,955,849
Noncurrent Liabilities
  Deferred and Other Noncurrent Liabilities                379,722      310,016
     Total Liabilities                                   7,403,929   18,265,865
Minority Interests                                           --         106,976

STOCKHOLDERS' EQUITY
  Common Stock    2001                2000
     Class A   127,232  shares;    127,232  shares         127,232      127,232
     Class B 1,410,761  shares;  1,410,761  shares       1,410,761    1,410,761
  Capital in Excess of Par Value                        12,854,943   12,758,610
  Retained Earnings
     Balance, Beginning                                 59,977,002   56,677,650
     Net Income                                         (4,190,773)   3,954,896
     Dividends - Cash 2001 and 2000                       (327,750)    (655,544)
     Balance, End                                       55,458,479   59,977,002
  Accumulated Other Comprehensive Income:
     Unrealized (Loss) Gain on Investments                 (57,275)     139,990
      Sub-Total                                         69,794,140   74,413,595
  Treasury Stock
    2001- 43,230 Class A shares;324,304 Class B shares (11,985,585)       --
    2000- 43,230 Class A shares;324,148 Class B shares       --     (11,978,694)

  Total Stockholders' Equity                            57,808,555   62,434,901
  Total Liabilities and Stockholders' Equity           $65,212,484  $80,807,742
                          See accompanying notes.
<PAGE>

                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                 For the 3 Months Ended: For the 6 Months Ended:
                                  6/30/2001   6/30/2000   6/30/2001   6/30/2000
CASH FLOWS FROM OPERATING
ACTIVITIES
 Net (loss) income              $(1,565,281) $1,356,195 $(4,190,773) $2,226,047
 Adjustments to reconcile net
   (loss) income to net cash
   provided by operating
   activities
  Depreciation and amortization     806,604     488,639   1,602,416   1,008,810
  Loss from impairment of VIR,
   Inc. goodwill, included
   in operating expenses             --          --       1,400,000       --
  Minority interest in
   consolidated subsidiaries         83,398          98      33,275     (34,503)
 Change in assets and liabilities
   Accounts receivable             (477,690)   (207,973)  2,283,339   2,908,688
   Inventories                    2,277,673    (987,162)  1,059,414  (2,900,128)
   Income taxes prepaid and
    receivable                   (1,502,000)      --     (2,983,743)      --
   Prepaid expenses                 (10,833)   (143,331)   (400,740)   (223,328)
   Prepaid pension costs             (2,391)      9,137     (30,967)     52,250
   Other assets                       --         (3,640)      --          --
   Deferred income tax benefits     (14,099)      --         29,901       --
   Accounts payable              (1,222,676)     83,399  (1,568,766)   (334,024)
   Accrued taxes on income            --       (631,750)      --       (344,701)
   Accrued expenses                 289,367    (159,155)   (664,151)    277,632
   Customer deposits                (17,559)    254,610       1,275     132,677
   Deferred and other noncurrent
    liabilities                      34,853     (31,499)     69,706       1,026
    Net Cash (Used In) Provided
     by Operating Activities     (1,320,634)     24,820  (3,359,814)  2,770,446

CASH FLOW FROM INVESTING
 ACTIVITIES
   Increase in note receivable        --          --       (399,058)   (405,612)
   Net additions to plant and
    equipment                      (358,263)   (684,251)   (988,897) (1,600,773)
   Additions to goodwill           (156,243)   (273,624)   (156,243)   (551,428)
   Net sale (or purchase) of
    short term investments       12,544,103    (529,303) 12,524,132   1,365,002
    Net Cash Provided by (Used
     In) Investing Activities    12,029,597  (1,484,430) 10,979,934  (1,192,811)

CASH FLOWS FROM FINANCING
ACTIVITIES
   Proceeds from bank loans       1,100,000       --      3,300,000       --
   Repayment of bank loans      (12,000,000)      --    (12,000,000)      --
   Proceeds from sales of
    subsidiary stock                  --          --         96,333       --
   Subsidiary stock reacquired
    from minority shareholders      (49,450)      --        (49,450)      --
   Reacquired Class B common
    shares                           (1,156)      --         (6,891)     (3,732)
   Dividends paid in cash          (163,864)   (163,886)   (327,750)   (327,773)
     Net Cash (Used In) Provided
      by Financing Activities   (11,114,470)   (163,886) (8,987,758)   (331,505)

NET (DECREASE) INCREASE IN CASH    (405,507) (1,623,496) (1,367,638)  1,246,130

CASH, BEGINNING                   1,750,237   3,078,903   2,712,368     209,277

CASH, ENDING                    $ 1,344,730  $1,455,407 $ 1,344,730  $1,455,407



            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
   Income Taxes                 $    55,000  $1,322,750 $   242,000  $1,492,500
   Interest                     $   164,055  $    --    $   315,084  $    --



                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
           NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1. Interim Financial Statements
   The  results of operations for the interim periods shown in this  report
   are  not necessarily indicative of results to be expected for the fiscal
   year.   In  the opinion of management, the information contained  herein
   reflects  all  adjustments necessary to make the results  of  operations
   for  the interim periods a fair statement of such operations.  All  such
   adjustments are of a normal recurring nature.

   Certain notes and other information have been condensed or omitted  from
   the  interim financial statements presented in the Quarterly  Report  on
   Form  10-Q.   Therefore, these financial statements should  be  read  in
   conjunction with the Company's 2000 Annual Report on Form 10-K.

2. Impairment of Goodwill
   During  March  2001 the Company recorded a charge to operating  expenses
   of  $1,400,000 related to the impairment in the value of goodwill  which
   arose  in connection with the acquisition of VIR, Inc.  This write  down
   of  goodwill  is attributable to the downturn in the data communications
   industry,   the   announced  combination  of  VIR  into  the   Company's
   subsidiary  Eastern  Research, Inc. and  closure  of  the  VIR  facility
   discussed  in  more detail below, all of which reduced  expectations  of
   future cash flows from VIR's operations.

3. Combination of Subsidiaries
   During  April  2001  the Company announced plans  to  combine  its  Data
   Communications  subsidiaries VIR Linear Switch (VIR) of Southampton,  PA
   into  Eastern  Research, Inc. (ERI), which is also a subsidiary  of  the
   Company.  VIR designs, manufactures and markets a number of test  access
   and   tech   control  products  for  use  in  customer  networks.    The
   Southampton,  PA facility will be closed later this year.  The  combined
   operations  will  be headquartered at ERI's facility in Moorestown,  New
   Jersey.  Manufacturing of some of VIR's products will be moved to  ERI's
   supplier with other manufacturing being transferred to the Macungie,  PA
   plant.   The  Company has estimated the restructuring charges (including
   employee  severance,  benefits and other exit  costs)  related  to  this
   combination  and plant closure to be approximately $530,000  which  have
   been included in the operating results for the second quarter of 2001.

4. Financing
   During  June  2001  Eastern Research, Inc. repaid all  outstanding  bank
   loans  totaling $12,000,000 with funds provided by Allen Organ  Company.
   The  Company  originally  obtained these loans  to  give  ERI  financial
   autonomy  as  it explored strategic alternatives.  With the  changes  in
   the  financial  markets  particularly  in  the  technology  sector,  the
   Company  decided to repay the outstanding loans to eliminate  the  costs
   related to this financing.

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

Liquidity and Capital Resources:

    Cash flows from operating activities decreased during the three and six
months  ended  June  30, 2001 when compared to the  same  period  in  2000,
primarily  due  to  operating losses incurred in  the  Data  Communications
segment.   These decreases were partially offset by reductions in inventory
levels   in  the  Musical  Instruments,  Electronic  Assemblies  and   Data
Communications segments.
    Cash flows from investing activities were used to purchase property and
equipment during the six months ended June 30, 2001 including approximately
$283,000  in  the  Musical Instruments segment, 134,000 in  the  Electronic
Assemblies segment and $560,000 in the Data Communications segment.
    During the three months ended June 30, 2001 the Company sold more  than
$12,000,000 in short term investments to fund the repayment of  bank  loans
discussed in Footnote 4 above.


Results of Operations:

Sales and Operating Income

                                 For the 3 Months Ended: For the 6 Months Ended:
                                  6/30/2001   6/30/2000   6/30/2001   6/30/2000
  Net Sales to
   Unaffiliated Customers
     Musical Instruments        $ 6,308,664 $ 7,837,715 $12,231,785 $14,509,062
     Data Communications          5,209,952   7,772,309   8,809,968  15,830,398
     Electronic Assemblies        2,973,696   2,409,061   6,267,056   3,912,916
     Audio Equipment                626,982     912,650   1,069,883   1,487,391
       Total                    $15,119,294 $18,931,735 $28,378,692 $35,739,767

  Intersegment Sales
     Musical Instruments        $    24,536 $   105,948 $    40,827 $   179,990
     Data Communications             61,312       --        193,438       --
     Electronic Assemblies            --          --          --         15,577
     Audio Equipment                  9,274       5,750      19,401       6,932
       Total                    $    95,122 $   111,698 $   253,666 $   202,499

  Income (Loss) from Operations
     Musical Instruments        $   261,047 $ 1,858,932 $   675,188 $ 2,929,557
     Data Communications         (3,028,951)   (563,261) (8,034,136)   (503,429)
     Electronic Assemblies          146,244     472,033     433,632     599,458
     Audio Equipment                (98,597)     19,322    (309,670)   (228,704)
       Total                    $(2,720,257)$ 1,787,026 $(7,234,986)$ 2,796,882


Musical Instruments Segment

    Sales  decreased $1,529,051 and $2,277,277 respectively, for the  three
and  six  months ended June 30, 2001 when compared to the same  periods  in
2000.   While  the order rate for the first half of 2001 was  approximately
equal  to  2000, the first half of 2000 sales were higher due to  shipments
made against a higher order backlog in 2000.
    The  gross profit percentage decreased to 25% and 27% respectively,  in
the  three and six months ended June 30, 2001 from 41% and 39% respectively
in  the same periods in 2000.  These decreases are due to lower sales  over
which to absorb fixed costs and changes in product mix.
    Selling, general and administrative, research and development  expenses
decreased slightly during the three and six months ended June 30, 2001 when
compared to the same periods in 2000.


Data Communications Segment

    Sales  decreased $2,562,357 and $7,020,430 respectively, for the  three
and  six  months ended June 20, 2001 when compared to the same  periods  in
2000,  resulting  in  significant operating losses in both  periods.   This
segment's order rate in the first half of 2001 was significantly lower than
the  same period in 2000.  The Company expects lower sales, as compared  to
the  previous  year, to continue through the balance of the  year  and  has
implemented  plans,  discussed below, to improve  operating  results.   The
sales  decrease  is  attributable to a general  slowdown  in  the  national
economy  and  a  more  significant  industry-wide  slowdown  in  the   Data
Communications  markets.   Some  of this segment's  products  are  sold  to
Competitive  Local Exchange Carriers (CLEC) that have been especially  hard
hit  by the economic down-turn, with many having difficulty raising capital
required  to continue to build out their networks (purchase equipment)  and
deliver services.
    Gross  profit margins decreased to 34% and 32% respectively during  the
three  and six months ended June 30, 2001 from 46% and 48% during the  same
periods  in  2000 due to the lower sales volume over which to absorb  fixed
costs and competitive pressures to lower selling prices of products.   Cost
of  goods  sold  for the three and six months ended June 30, 2001  includes
$360,000  and  $720,000  respectively, of  additional  inventory  valuation
adjustments  recorded at VIR, Inc. for slow moving and  obsolete  inventory
associated  with  discontinued product lines.   The  Company  continues  to
review  the VIR inventory and product lines, which may result in additional
inventory valuation adjustments in future periods.
   Sales and marketing expenditures decreased slightly during the three and
six months ended June 30, 2001 when compared to the same periods in 2000.
    General  and  administrative expenses increased approximately  $140,000
(10%) during the six months ended June 30, 2001 and decreased $80,000 (10%)
during  the  three  months ended June 30, 2001 when compared  to  the  same
periods in 2000.
    Research and development expenditures increased approximately  $366,000
(25%)  and  $886,000 (32%) respectively for the three and six months  ended
June 30, 2001 when compared to the same periods in 2000.
    As  discussed in Note 2 above, the first quarter of 2001 and six months
ended  June  30,  2001 operating expenses includes a charge  of  $1,400,000
related to the write down of the value of VIR's goodwill.
    In  April 2001 the Company announced plans for restructuring  its  Data
Communications  segment.   The  Company is combining  the  VIR  operations,
located  in  Southampton,  PA into ERI with the combined  operations  being
headquartered  in  Moorestown, NJ.  The Southampton, PA  facility  will  be
closed  later  this year.  Manufacture of some of VIR's  products  will  be
moved to ERI's supplier with other manufacturing being  transferred to  the
Macungie,  PA  plant.   VIR  employs  about  30  people  with  some   being
transferred  to  the Moorestown facility.  See Note 3 above for  additional
information on this plant closing.
    Because  of  the  economic down-turn that resulted  in  this  segment's
significant reduction in sales volume the Company has taken other steps  to
reduce its expenditures for this segment.  ERI reduced its workforce by  10
positions  during  the  first quarter of 2001 resulting  in  severance  and
related costs of approximately $100,000.  In April of 2001 ERI reduced  its
workforce  by  an  additional 11 positions.  These additional  terminations
along  with the VIR plant closure costs discussed above resulted in a total
restructuring charge for the Data Communications segment of $640,000  which
is  included  in the operating results of the second quarter of  2001.   In
addition  this  segment  has  reduced its  planned  operating  and  capital
expenditures for the balance of the year.
    The Company's Data Communications segment is also redirecting its sales
and  marketing efforts.  In recent years ERI has had significant growth for
its  DACS  product  line in the CLEC market, which has  been  significantly
affected  by the economic problems discussed above.  ERI has more  recently
focused  on  healthier markets for which the DNX is suited,  including  the
wireless  and  certain international markets.  While  initial  results  are
promising,  the  long  sales cycles involved in DNX sales  will  require  a
couple of quarters for this program to be evaluated.
   The Company's Data Communications segment has introduced significant new
products  including the DNX-88 and an OCS/STM1 interface card for  the  DNX
line,  the first optical product for ERI.  The DNX-88 system scales from  8
to  688  T1/E1  interfaces.   It  leverages all  narrowband  and  broadband
interfaces within the current DNX portfolio, including T1/E1, T3, STS1  and
OC3/STM1,  while  retaining its ability to groom  multiservice  traffic  by
performing non-blocking 3-1-0 cross connections.  These products  are  well
positioned for the markets listed in the previous paragraph.
    With the cost reductions and new markets focus listed above the Company
previously  announced that it plans for the Data Communications segment  to
approach  breakeven  from  operations in the last  quarter  of  2001.   The
Company  is  currently on the path for achieving this goal.   However,  the
current  economic  and  market  conditions  make  future  sales  visibility
problematic, which could jeopardize achievement of this goal.

Electronic Assemblies Segment

    Sales increased $564,635 and $2,354,140 respectively for the three  and
six  months ended June 30, 2001 when compared to the same periods in  2000.
During  the  second  quarter, some of the Company's contract  manufacturing
customers  have been affected by the current economic slowdown  which  will
lower  sales  for  this  segment  during  future  quarters.   Gross  profit
percentages  for the three and six months ended decreased to  approximately
11%  as  compared to 20% during the same periods in 2000.  These  decreases
are due to changes in product mix.
   Selling, general and administrative expenses in the three and six months
ended June 30, 2001 increased slightly when compared to the same periods in
2000.

Audio Equipment Segment

   Sales decreased $285,668 and $417,508 for the three and six months ended
June  30,  2001  when compared to the same periods in 2000.   Gross  profit
margins  were  38% and 35% respectively, in the three and six months  ended
June 30, 2001 as compared to 38% in the same periods in 2000.
    Selling, general and administrative costs decreased slightly during the
three  and six months ended June 30, 2001 when compared to the same  period
in 2000.
    Legacy  Audio  has  historically sold its  products  through  a  direct
marketing  program.  The Company believes that this method of  distribution
has  limited its ability to penetrate the broader market.  Legacy has begun
implementing  plans to distribute its products through a  more  traditional
dealer  network.   The  Company will add dealers in a  conservative  manner
beginning  in  the third quarter of this year.  During this  period  Legacy
will  begin shifting marketing resources to the new method of distribution.
This may result in a sales decrease in direct sales that will not be offset
until the new dealers begin selling the Company's products.

Other Income and Expense

    Investment income increased during the three and six months ended  June
30,  2001  when compared to the same period in 2000 due to higher  invested
balances and higher rates of return available on invested funds.

Factors that May Affect Operating Results

   The statements contained in this report on Form 10-Q that are not purely
historical are forward looking statements within the meaning of Section 27A
of  the  Securities Act of 1933 and Section 21E of the Securities  Exchange
Act  of  1934,  including statements regarding the Company's  expectations,
hopes,  intentions  or  strategies regarding the future.   Forward  looking
statements  include:  statements  regarding  future  products  or   product
development; statements regarding future research and development  spending
and  the  Company's marketing and product development strategy,  statements
regarding  future  production  capacity.  All  forward  looking  statements
included in this document are based on information available to the Company
on  the  date hereof, and the Company assumes no obligation to  update  any
such  forward looking statements.  Readers are cautioned not to place undue
reliance  on  these forward looking statements, which reflect  management's
opinions  only as of the date hereof.  Readers should carefully review  the
risk  factors described in other documents the Company files from  time  to
time  with  the  Securities and Exchange Commission, including  the  Annual
Report  on  Form  10-K.  It is important to note that the Company's  actual
results  could  differ  materially  from  those  in  such  forward  looking
statements.  Some of the factors that could cause actual results to  differ
materially are set forth below.
   The  Company  has  experienced and expects  to  continue  to  experience
fluctuations  in  its  results  of operations.   Factors  that  affect  the
Company's  results of operations include the volume and  timing  of  orders
received, changes in global economics and financial markets, changes in the
mix of products sold, market acceptance of the Company's and its customer's
products,  competitive pricing pressures, global currency  valuations,  the
availability  of  electronic  components that the  Company  purchases  from
suppliers,  the Company's ability to meet increasing demand, the  Company's
ability  to  introduce new products on a timely basis, the  timing  of  new
product  announcements and introductions by the Company or its competitors,
changing  customer requirements, delays in new product qualifications,  the
timing and extent of research and development expenses and fluctuations  in
manufacturing yields.  As a result of the foregoing or other factors, there
can  be  no  assurance  that  the  Company  will  not  experience  material
fluctuations  in future operating results on a quarterly or  annual  basis,
which  would  materially  and  adversely  affect  the  Company's  business,
financial condition and results of operations.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
   No change from information disclosed in the Company's 2000 annual
   report of form 10-K.

PART II    OTHER INFORMATION
   Item 4.     Submission of Matters to a Vote of Security Holders
   (a) Annual Meeting: April 26, 2001
   (b) Election  of the following directors for a one-year  term:
        Steven   Markowitz,  Eugene  Moroz,  Leonard  Helfrich,   Martha
        Markowitz,  Orville  Hawk,  Albert Schuster,  Jeffrey  Schucker,
        Ernest Choquette and Michael Doyle.
   (c) In addition to the election of directors and the waiver of
        reading  of  the minutes of the prior meeting, the  shareholders
        ratified  charitable deductions made in 2000 and all  contracts,
        agreements,  and  employments by  the  Board  of  Directors  and
        officers  since the previous annual meeting in April 2000.   All
        resolutions  were  adopted  by  the  vote  of  all  shareholders
        present, in person or proxy.

   Item 5.     Other Information
        Michael  F.  Doyle was elected a Director  at  the  annual
        shareholders meeting on April 26, 2001.  Mr. Doyle is  President
        of  the  Company's subsidiary Eastern Research, Inc.   Prior  to
        joining  ERI  in May of 1997, Mr. Doyle had 20-years  experience
        in  the  data  communications industry  including  positions  at
        Infotron  Systems,  Inc.,  Dowty  Communications,  Inc.,  Teleos
        Communications, Inc. and Madge Networks, Inc.

   Item 6.     Exhibits and Reports on Form 8-K
   (b)  Forms 8-K
        1.The  Company  filed a Form 8-K dated  April  20, 2001
          announcing  the combination of its Data  Communications
          subsidiaries VIR Linear Switch into Eastern Research, Inc.

SIGNATURES

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.

                                 Allen Organ Company
                                 (Registrant)

Date: August 8, 2001             /s/ STEVEN MARKOWITZ
                                 Steven Markowitz, President and Chief
                                 Executive Officer

Date: August 8, 2001             /s/ NATHAN S. ECKHART
                                 Nathan S. Eckhart, Vice President-Finance,
                                 Chief Financial and Principal Accounting
                                 Officer