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 March 31, 2004

                       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

Indicate by check mark whether the registrant is an accelerated filer as
defined in Rule 12b-2 of the Exchange Act.
                              Yes       No  X

Number of shares outstanding of each of the issuer's classes of common
stock, as of May 13, 2004:

                    Class A - Voting          83,864               shares
                    Class B - Non-voting   1,072,379               shares
<PAGE>
                            ALLEN ORGAN COMPANY

                                   INDEX


Part I  Financial Information

   Item 1.Financial Statements
          Consolidated Condensed Statements of Income for the three months
          ended March 31, 2004 and 2003

          Consolidated Condensed Balance Sheets at March 31, 2004 and
          December 31, 2003

          Consolidated Condensed Statements of Cash Flows for the three
          months ended March 31, 2004 and 2003

          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

   Item 4.Controls and Procedures

Part II    Other Information
   Item 2.Changes in Securities and Use of Proceeds
   Item 6.Exhibits and Reports on Form 8-K
   Signatures
   Exhibits
<PAGE>
PART I  FINANCIAL INFORMATION
   ITEM 1.FINANCIAL STATEMENTS

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

                                             Three Months Ended March 31,
                                                   2004         2003

         Net Sales                             $16,718,716  $13,874,464


         Costs and Expenses
          Costs of sales                         8,839,700    8,599,510
          Selling, general and administrative    4,320,415    3,467,966
          Research and development               2,826,396    1,930,495
          Other expense, net                        11,688          878
           Total costs and expenses             15,998,199   13,998,849

         Income (Loss) from Operations             720,517     (124,385)

         Interest and Other Income                  83,157      104,577

         Income (Loss) Before Taxes                803,674      (19,808)

         Income Taxes                              121,000        --

         Net Income (Loss)                     $   682,674  $   (19,808)

         Basic and Diluted Earnings (Loss)
          Per Share                            $      0.59  $     (0.02)

         Dividends Per Share - Cash            $      0.14  $      0.14

         Total Comprehensive Income (Loss)     $   692,190  $   (22,322)

                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED BALANCE SHEETS

                                                  March 31,  December 31,
                     ASSETS                          2004        2003
                                                 (Unaudited)   (Audited)
Current Assets
  Cash                                            $6,859,159  $5,907,576
  Investments Including Accrued Interest          17,206,668  17,143,171
  Accounts Receivable, net of reserves of
   $616,892 and $605,496, respectively             9,510,525  11,652,365
  Inventories:
     Raw Materials                                 4,454,634   4,456,060
     Work in Process                               5,944,017   5,525,106
     Finished Goods                                3,977,327   3,945,007
      Total Inventories                           14,375,978  13,926,173
  Prepaid Expenses                                   956,151     491,444
  Deferred Income Taxes                            2,736,191   2,741,167
     Total Current Assets                         51,644,672  51,861,896

Property, Plant and Equipment                     28,784,968  28,283,282
  Less Accumulated Depreciation                  (18,567,428)(18,116,278)
     Net Property, Plant and Equipment            10,217,540  10,167,004

Other Assets
  Note Receivable from Related Party               2,397,291   2,397,291
  Cash Value of Life Insurance                     2,474,002   2,474,002
  Deferred Income Taxes                            3,493,238   3,493,238
  Intangible Assets, net                           1,232,204   1,347,822
  Goodwill, net                                      194,523     194,523
  Other Assets                                        14,500      14,500
     Total Other Assets                            9,805,758   9,921,376
     Total Assets                                $71,667,970 $71,950,276

          LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current Liabilities
  Accounts Payable                                $1,219,585  $1,278,535
  Accrued Income Taxes                               383,626     657,941
  Other Accrued Expenses                           3,903,412   3,811,025
  Customer Deposits                                2,364,774   2,197,393
     Total Current Liabilities                     7,871,397   7,944,894

Noncurrent Liabilities
  Deferred and Other Noncurrent Liabilities        2,069,661   1,946,696
  Accrued Pension Costs                            4,831,853   5,693,853
     Total Noncurrent Liabilities                  6,901,514   7,640,549
     Total Liabilities                            14,772,911  15,585,443

STOCKHOLDERS' EQUITY
  Class A Voting Common stock, $1 par value,
   400,000 shares authorized,
   127,232 shares issued                             127,232     127,232
  Class B Non-Voting Common stock, $1 par value,
   3,600,000 shares authorized,
   1,410,761 shares issued                         1,410,761   1,410,761
  Capital in Excess of Par Value                  13,150,610  13,150,610
  Retained Earnings
     Balance, Beginning                           58,015,139  57,267,763
     Net Income                                      682,674   1,396,896
     Dividends - Cash 2004 and 2003                 (161,874)   (649,520)
     Balance, End                                 58,535,939  58,015,139
  Accumulated Other Comprehensive Loss            (3,823,178) (3,832,694)
     Sub-total                                    69,401,364  68,871,048
  Treasury Stock, at cost, 43,368 Class A
   shares in 2004 and 2003,338,382 Class B
   shares in 2004 and 338,380 in 2003            (12,506,305)(12,506,215)
     Total Stockholders' Equity                   56,895,059  56,364,833
     Total Liabilities and Stockholders' Equity  $71,667,970 $71,950,276

                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                Three Months Ended
                                                     March 31,
                                                 2004        2003
  CASH FLOWS FROM OPERATING ACTIVITIES
   Net income (loss)                           $682,674    $(19,808)
   Adjustments to reconcile net income (loss)
    to net cash provided by operating
    activities
     Depreciation and amortization              566,768     606,069
     Deferred income taxes                        4,976      (1,083)
   Change in assets and liabilities:
     Accounts receivable                      2,141,840   3,992,215
     Inventories                               (449,805)    267,349
     Prepaid income taxes                          --       161,071
     Prepaid expenses                          (464,707)   (325,294)
     Other assets                                  --         1,092
     Accounts payable                           (58,950) (4,364,594)
     Accrued income taxes                      (274,315)     33,175
     Other accrued expenses                      92,387     (16,735)
     Customer deposits                          167,381    (258,888)
     Accrued pension costs                     (862,000)    249,999
     Deferred and other noncurrent liabilities  122,965      79,065
       Net Cash Provided by Operating
        Activities                            1,669,214     403,633

  CASH FLOW FROM INVESTING ACTIVITIES
     Net additions to property, plant and
      equipment                                (501,686)   (189,545)
     Net purchase of short term investments     (53,981)    (60,278)
       Net Cash Used In Investing Activities   (555,667)   (249,823)

  CASH FLOWS FROM FINANCING ACTIVITIES
     Dividends paid in cash                    (161,874)   (163,808)
     Reacquired Class B common shares               (90)       --
     Proceeds from exercise of subsidiary
      stock options                                --       121,250
     Subsidiary company stock reacquired from
      minority shareholders                        --      (194,656)
       Net Cash Used In Financing Activities   (161,964)   (237,214)

  NET INCREASE (DECREASE) IN CASH               951,583     (83,404)

  CASH, BEGINNING                             5,907,576   4,515,189

  CASH, ENDING                               $6,859,159  $4,431,785

            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
  Cash paid (refunded) for:
     Income Taxes                            $  395,315  $ (194,246)

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

1. Interim Financial Statements
   In  the opinion of management, the information contained herein reflects
   all  adjustments  necessary to present fairly  the  Company's  financial
   position,  results of operations and cash flows.  All  such  adjustments
   are  of  a normal recurring nature.  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.
   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 2003 Annual Report on Form 10-K.
2. Stock-Based Compensation
   The  Company accounts for its stock-based compensation plans  using  the
   accounting  prescribed by Accounting Principles Board  Opinion  No.  25,
   Accounting  for  Stock Issued to Employees.  Since the  Company  is  not
   required   to   adopt  the  fair  value  based  recognition   provisions
   prescribed  under Statement of Financial Accounting Standards  No.  123,
   as  amended by SFAS No. 148, Accounting for Stock-Based Compensation, it
   has  elected only to comply with the disclosure requirements  set  forth
   in the Statements.
   Had  compensation  cost  been determined on  the  basis  of  fair  value
   pursuant to SFAS No. 123, as amended by SFAS No. 148, net income  (loss)
   and earnings per share would have been decreased as follows:
                                               Three Months Ended March 31,
                                                    2004          2003
         Net income (loss)
           As reported                            $682,674     $(19,808)
           Total stock-based employee
           compensation (expense) benefit
           determined under fair value based
           method for all awards, net of
           related tax effects                     (16,079)      11,790
             Pro forma                            $666,595     $ (8,018)
         Earnings (Loss) per share
           As reported                            $   0.59     $  (0.02)
           Pro forma                              $   0.58     $  (0.01)

   The  Company granted options on an additional 4,500 shares of its  Class
   B  stock  during the three months ended March 31, 2004.  The fair  value
   of  each  option  granted  is estimated on  the  grant  date  using  the
   Black-Scholes  option  pricing model.  The  following  assumptions  were
   made  in  estimating the fair value of options granted under  the  Allen
   Organ Company stock option plan during 2004:

          Assumptions
           Dividend yield                   1.40%
           Risk-free interest rate          2.25%
           Expected life                  7 years
           Expected volatility                15%

3. Warranty Costs
   The  Company  provides  a  warranty covering manufacturing  defects  for
   certain  of  its  products for varying lengths of time.   The  Company's
   policy is to accrue the estimated cost of warranty coverage at the  time
   the  sale  is  recorded.  The activity in the warranty accrual  for  the
   three months ended March 31, 2004 is summarized as follows:

       Accrual at January 1, 2004                   $1,210,000
       Additions charged to  warranty expense           88,750
       Claims paid and charged against the accrual    (231,038)
       Accrual at March 31, 2004                    $1,067,712

4. Earnings Per Share
   The  following  shows the amounts used in computing earnings  per  share
   and  the effect on weighted average number of shares for dilutive common
   stock.
                                              Three Months Ended March 31,
                                                   2004           2003
       Weighted average number of common
        shares  used in basic
        earnings per share                      1,156,244      1,170,160
       Effect of stock options                      1,113          --
       Weighted average number of common
        shares use in diluted
        earnings per share                      1,157,357      1,170,160

   Outstanding  stock  options to purchase 12,000 shares  of  common  stock
   were  not included in computing earnings per share for the three  months
   ended March 31, 2003 because the effect was antidilutive.

5. Retirement Plan
   The  net  periodic  pension benefit cost included in  the  statement  of
   income is as follows:
                                               Three Months Ended March 31,
                                                   2004           2003
       Service Cost                              $  --          $109,076
       Interest Cost                              249,163        272,382
       Expected return of plan assets            (205,090)      (192,179)
       Amortization of net loss from
        prior periods                              94,517        104,308
         Net Pension Cost                        $138,590       $293,587


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

Liquidity and Capital Resources:
    Cash  flows from operating activities increased during the three months
ended  March  31,  2004,  due to higher operating results  in  the  Musical
Instruments, Electronic Assemblies and Data Communications segments  and  a
decrease  in accounts receivable in the Data Communications segment.   Cash
inflows  from  these  activities  were partially  offset  by  a  $1,000,000
contribution  made  to the Company's defined benefit pension  plans.   Cash
flows  from operating activities during the three month period ended  March
31,  2003, included a decrease in accounts receivable and accounts  payable
in  the  Data  Communications segment related to  a  large  customer  order
produced and shipped in the fourth quarter of 2002.
    Cash  flows from investing activities for the three months ended  March
31,  2004, includes approximately $500,000 of plant and equipment additions
primarily computer and test equipment purchased for the Data Communications
segment.

Sales and Operating Income
                                              Three Months Ended March 31,
                                                   2004          2003
            Net Sales to Unaffiliated Customers
              Musical Instruments              $ 5,066,244   $ 5,370,725
              Data Communications               10,572,051     7,331,983
              Electronic Assemblies                628,554       776,393
              Audio Equipment                      451,867       395,363
               Total                           $16,718,716   $13,874,464

            Intersegment Sales
              Musical Instruments              $   257,369   $   159,311
              Data Communications                   20,174         --
              Electronic Assemblies                331,855         --
              Audio Equipment                        2,782        12,051
               Total                           $   612,180   $   171,362

            Income (Loss) from Operations
              Musical Instruments              $    26,774   $   (89,194)
              Data Communications                  882,236       245,832
              Electronic Assemblies                (21,466)     (235,010)
              Audio Equipment                     (167,027)      (46,013)
               Total                           $   720,517   $  (124,385)

Musical Instruments Segment
    Sales decreased $304,481 in the first quarter of 2004 when compared  to
the same period in 2003 due to lower order volume during the second half of
2003,  which  management believes was attributable to the overall  economic
slowdown.   While the order rate has improved during the first  quarter  of
2004,  as  compared to the same period in 2003, the order  backlog  at  the
beginning  of  2004  was lower than at the beginning of 2003  resulting  in
fewer orders produced and shipped in the first quarter of 2004 versus 2003.
   Gross profit margins increased to 27.1% of sales in the first quarter of
2004  from 22.4% in the same period in 2003.  This increase is due to  cost
reduction  efforts that were initiated during 2003 to reduce  material  and
other operating costs.
     Selling,   general  and  administrative  expenses  and  research   and
development  expenditures increased slightly during the three months  ended
March 31, 2004 when compared to the same period in 2003.

Data Communications Segment
    This  segment's sales in the first quarter of 2004 increased $3,240,068
(44%)  when compared to the same period in 2003.  This increase is  due  to
higher  order  volume  which  management believes  is  attributable  to  an
improvement in the data communications market and the timing of  completing
sales with larger customers.
    Gross  profit margins in the first quarter of 2004 increased to  58.7%,
compared to 54.9% in the same period of 2003, due to reductions in  product
costs and changes in product mix.
    Sales  and  marketing expenses increased approximately  $580,000  (35%)
during  the  three month ended March 31, 2003, when compared  to  the  same
period  in  2003,  due  to the addition of sales and  marketing  personnel,
higher travel costs related to international sales efforts and higher sales
volume.
    General  and administrative expenditures in the first quarter  of  2004
increased slightly when compared to the same period in 2003.
   Research and development expenses increased approximately $884,000 (58%)
in  the  first  quarter of 2004 when compared to the same period  in  2003.
This  increase is related to increased expenditures incurred in  connection
with the acquisition of Avail Networks and additional personnel and related
costs associated with the development of next generation products.

Electronic Assemblies Segment
   Sales for the first quarter of 2004 decreased $147,839, when compared to
the  same  period  in  2003, due to lower order volume from  the  Company's
contract  manufacturing customers.  This segment is focused on diversifying
its customer base.
    The gross profit margin was 6.3% in the first quarter of 2004, compared
to  a  loss of approximately $(148,006) (19%) in the first quarter of 2003.
This  increase is due to cost reduction efforts that were initiated  during
2003 to reduce operating costs.
Selling,  general  and  administrative  expenses  decreased  slightly  when
compared to the same period in 2003.

Audio Equipment Segment
    Sales for the first quarter of 2004 increased slightly when compared to
the  same  period  in 2003.  Legacy Audio remains focused on  developing  a
quality  independent  dealer  network of high end  audio-video  stores  and
custom installers.
    Gross profit margins in the first quarter of 2004 decreased to 34.2% as
compared  to 39.2% for the same period in 2003, primarily due to reductions
in wholesale selling prices to comparable industry levels.
    Selling,  general and administrative costs for the period increased  in
the first quarter of 2004 when compared to the same period in 2003.

Other Income and Expense
    Investment income for the three months ended March 31, 2004  was  lower
than  the  same  period in 2003 due to lower rates of return  available  on
invested funds.

Income Taxes
    The tax provision for the three months ended March 31, 2004 is based on
the  estimated  effective tax rate for the year, which  is  less  than  the
statutory rate due to tax credits and exempt income.

Contractual Obligations and Commercial Commitments
    During the three months ended March 31, 2004, there have been no  items
that significantly impacted the Company's commitments and contingencies  as
disclosed  in  the notes to the 2003 consolidated financial  statements  as
filed  on  Form  10-K.  In addition, the Company has no off  balance  sheet
arrangements.

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 2003 annual
   report on form 10-K.

ITEM 4.  CONTROLS AND PROCEDURES.
   The Company's Chief Executive Officer and Chief Financial Officer have
   evaluated the effectiveness of the design and operation of the
   Company's disclosure controls and procedures, which are designed to
   insure that the Company records, processes, summarizes and reports in a
   timely and effective manner the information required to be disclosed in
   the reports filed with or submitted to the Securities and Exchange
   Commission.  Based upon this evaluation, they concluded that the
   Company's disclosure controls are effective as of March 31, 2004.
   There has been no change in the Company's internal control over
   financial reporting that occurred during the quarter ended March 31,
   2004 that has materially affected, or is reasonably likely to
   materially affect, the Company's internal control over financial
   reporting.

PART II    OTHER INFORMATION
  Item 2.  Changes in Securities and Use of Proceeds
   (e)     The following table sets forth certain information
   relating to shares of the Company's common stock repurchased by the
   Company during the quarter ended March 31, 2004.
                    Issuer Purchases of Equity Securities
                                                                       Maximum
                                                                      Number (or
                                                                     Approximate
                                                            Total      Dollar
                                                           Number of  Value) of
                                                          Shares (or  Shares (or
                                                            Units)     Units)
                                                          Purchased   that May
                                   Total      Average     as Part of   Yet Be
                                 Number of   Price Paid    Publicly   Purchased
                                 Shares (or   per Share    Announced   Under the
                                  Units)     (or Units)    Plans or    Plans or
             Period              Purchased   Purchased     Programs   Programs

   Month #1 (January 1-31, 2004)     2       $   45.00        --          --
   Month #2 (February 1-29, 2004)   --           --           --          --
   Month #3 (March 1-31, 2004)      --           --           --          --


  Item 6.  Exhibits and Reports on Form 8-K
   (a) Exhibits
       Exhibit No.               Description
         31.1    Rule 13a-14(a)/15d-14(a) Certification-Chief Executive Officer
         31.2    Rule 13a-14(a)/15d-14(a) Certification-Chief Financial Officer
         32      Section 1350 Certifications
         99.1    Audit Committee Charter

   (b)    Forms 8-K
       1.  The Company filed a Form 8-K dated February 13, 2004 announcing its
           2003 earnings for the fourth quarter and full year results of
           operations.

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:May 14, 2004       /s/STEVEN MARKOWITZ
                        Steven Markowitz, President and Chief Executive Officer

Date:May 14, 2004       /s/NATHAN S. ECKHART
                        Nathan S. Eckhart, Vice President-Finance,
                         Chief Financial and Principal Accounting Officer