<PAGE>



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

                                  FORM 10-QSB

               Quarterly Report Pursuant to Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934


For the quarterly period ended April 4, 1998      Commission file No. 0-11201
                               -------------                          -------

                           MERRIMAC INDUSTRIES, INC.
-----------------------------------------------------------------------------
      (Exact name of small business issuer as specified in its charter)


        New Jersey                                           22-1642321
-------------------------------                     -------------------------
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                          Identification No.)



     
41 Fairfield Place West Caldwell, New Jersey                    07006
--------------------------------------------        -------------------------
 (Address of principal executive offices)                     (Zip code)
       



Registrant's telephone number, including area code (973) 575-1300
                                                   --------------


     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15 (d) of the Exchange Act 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
      ---    ---

     State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.

           Class                                  Outstanding at May 8, 1998
-----------------------------                  ------------------------------- 
Common Stock ($.50 par value)                             1,603,269






<PAGE>


PART I.     FINANCIAL INFORMATION

ITEM 1.     Financial Statements

                           MERRIMAC INDUSTRIES, INC.
                          CONSOLIDATED BALANCE SHEET 
                          ---------------------------
                                 (Unaudited)
                                                        April 4, 
                                                          1998
                                                      -----------
ASSETS                                                         
------
Current assets:
  Cash and cash equivalents .......................   $ 2,478,894
  Accounts receivable .............................     4,003,940
  Inventories:
    Finished goods ................................       563,646
    Work in process ...............................     2,558,352
    Parts and raw materials .......................       818,205
                                                      -----------
      Total inventories ...........................     3,940,203
    Other current assets ..........................       145,217
    Deferred tax assets ............................      913,300
                                                      -----------
      Total current assets ........................    11,481,554

Property, plant and equipment .....................    14,451,339
  Less accumulated depreciation ...................     9,806,306
                                                      -----------
      Net property, plant and equipment ...........     4,645,033

Deferred income taxes .............................        65,000
Other assets ......................................        91,208
                                                      -----------
      Total Assets ................................   $16,282,795
                                                      ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current liabilities:
  Accounts payable ................................   $ 1,151,568
  Accrued liabilities .............................     1,288,449  
  Income taxes payable ............................       263,405
                                                      -----------
      Total current liabilities ...................     2,703,422
 
Deferred compensation .............................       417,493       
                                                      -----------
      Total liabilities ...........................     3,120,915
                                                      ----------- 
Stockholders' equity:
  Common stock, par value $.50 per share:
    Authorized:  5,000,000 shares
    Issued:  2,654,348 shares .....................     1,327,174
  Additional paid-in capital ......................     9,744,139
  Retained earnings ...............................    11,422,632 
                                                      -----------
                                                       22,493,945
  Less treasury stock, at cost: 1,074,839 shares ..    (9,227,065)              
  Less loan to officer-stockholder ................      (105,000) 
                                                      -----------
     Total stockholders' equity ...................    13,161,880
                                                      -----------
     Total Liabilities and Stockholders' Equity ...   $16,282,795
                                                      ===========


See accompanying notes to consolidated financial statements.





                                     - 1 -


<PAGE>

                           MERRIMAC INDUSTRIES, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
                       ---------------------------------
                                  (Unaudited)

                                        
                                 
                                                         Thirteen Weeks         
                                                    ----------------------  
                                                       April 4,  March 29,      
                                                         1998      1997         
                                                    ----------  ----------  
Net sales ...................................       $5,792,607  $4,275,155  
                                                    ----------  ----------  
Cost and expenses:
  Cost of sales .............................        3,217,852   2,375,107 
  Selling, general and
    administrative ..........................        1,696,695   1,431,678    
  Research and development ..................          211,256      57,328
                                                    ----------  ----------  
                                                     5,125,803   3,864,113  
                                                    ----------  ----------  

Operating income ............................          666,804     411,042   
Interest and other  
  income, net................................           12,742      26,704  
                                                    ----------  ----------  
Income before income taxes ..................          679,546     437,746
Provision for income taxes ..................          252,000     160,000  
                                                    ----------  ----------  
Net income ..................................       $  427,546  $  277,746 
                                                    ==========  ==========  

Net income per common share: 
  Basic .....................................             $.27        $.18
                                                          ====       ===== 
  Diluted ...................................             $.26        $.18
                                                          ====       ===== 
Cash dividend per share common stock ........               -         $.10
                                                          ====        ==== 

Weighted average number of  
  shares outstanding:
  Basic .....................................         1,576,993  1,513,341
                                                      =========  =========
  Diluted ...................................         1,618,165  1,547,276
                                                      =========  =========


See accompanying notes to consolidated financial statements.






                                      -2-
<PAGE>



                           MERRIMAC INDUSTRIES, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                     -------------------------------------
                                  (Unaudited)


                                                         Thirteen Weeks Ended
                                                      -------------------------
                                                         April 4,     March 29, 
                                                           1998         1997   
                                                      ----------     ----------
Cash flows from operating activities:
  Net income .......................................    $427,546      $ 277,746
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization...................   207,086        207,581
      Deferred compensation ..........................    58,340         35,430
      Stock-based compensation expense ...............    15,300             -
      Changes in operating assets and liabilities:
        Accounts receivable...........................  (912,653)      (663,056)
        Inventories...................................   568,366       (311,622)
        Other current assets..........................     2,986         79,141
        Deferred tax assets...........................     6,200             -
        Other assets..................................    22,568          4,191
        Accounts payable..............................     9,789        202,070
        Accrued liabilities...........................    88,580        179,839
        Income taxes payable..........................   217,580         44,297
        Deferred compenstion..........................   (16,547)        (7,500)
                                                      ----------     ----------
Net cash provided by operating activities...........     695,141         48,117
                                                      ----------     ----------
Cash flows from investing activities:
  Purchase of capital assets.......................     (666,890)      (381,839)
  Proceeds from sales of capital assets............        8,515             -
  Purchase of available-for-sale securities........           -         (12,490)
                                                      -----------    ----------
Net cash used in investing activities..............     (658,375)      (394,329)
                                                      -----------    ----------
Cash flows from financing activities:
  Proceeds from the issuance of common stock.......       27,403         37,640
  Payment of dividends.............................           -        (151,426)
                                                      -----------    ----------
Net cash provided by (used) in financing activities       27,403       (113,786)
                                                      -----------    ----------
Net increase (decrease) in cash and cash equivalents      64,169       (459,998)
Cash and cash equivalents at beginning of year.....    2,414,725      1,265,581 
                                                      -----------    ----------
Cash and cash equivalents at end of period.........   $2,478,894      $ 805,583 
                                                      ===========    ==========

Supplemental disclosures of cash flows information:                    
  Cash paid during the period for:
    Income taxes...................................   $  30,000              -
                                                      ==========     ==========

See accompanying notes to consolidated financial statements.


                                      -3-

<PAGE>



                           MERRIMAC INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  
  A.   Basis of presentation

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with the  instructions  to Form 10-QSB and therefore,  do
not include all  information  and  footnote  disclosures  otherwise  required by
Regulation S-B. The financial  statements do,  however,  reflect all adjustments
which are, in the opinion of the management,  necessary for a fair  presentation
of the financial  position of the Company as of April 4, 1998 and its results of
operations and cash flows for the periods presented.

  B.    Net income per common share

     Effective  January 3, 1998, the Company adopted the provisions of Statement
of  Financial   Accounting  Standards  No.  128,  "Earnings  per  Share,"  which
establishes the new standard for computation and  presentation of net income per
common share.  Under the new requirements  both basic and diluted net income per
common  share are  presented.  All prior  period net  income  per  common  share
information has been restated.

     Basic net income per common  share is  calculated  by dividing  net income,
less dividends on preferred stock, if any, by the weighted average common shares
outstanding during the period.

     The  calculation  of diluted net income per common share is similar to that
of basic net income per common share,  except that the  denominator is increased
to  include  the  number  of  additional  common  shares  that  would  have been
outstanding  if  all  potentially  dilutive  common  shares,  principally  those
issuable under stock options, were issued during the reporting period.

  C.    Accounting period

     The  Company's  fiscal year is the 52-53 week period ending on the Saturday
closest to December 31. The Company has quarterly dates that correspond with the
Saturday  closest  to the last day of each  calendar  quarter  and each  quarter
consists of 13 weeks in a 52-week year. Every fifth year, the additional week to
make a 53-week  year  (fiscal year 1997 was the latest and fiscal year 2002 will
be the next) is added to the fourth  quarter,  making such quarter consist of 14
weeks.

  D.    Dividends

     During fiscal 1997,  the Company paid a $.10 per share  dividend in each of
the first three  quarters.  The  dividend  was  eliminated  by a decision of the
Company's Board of Directors (the "Board") on August 28, 1997.

     The Board announced on May 5, 1998, the declaration of a 10% stock dividend
to stockholders  of record on May 15, 1998 to be  distributed,  and payments for
fractional  shares made, on June 5, 1998. The weighted  average number of shares
outstanding and net income per share information for all prior reporting periods
will be  restated  to  reflect  the  effects  of the  stock  dividend.  

                                      -4-
<PAGE>

                            MERRIMAC INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  E.    Purchase of common stock by Officer and Director

     The Company  sold 20,000  shares of common  stock from its  treasury to the
Company's  Chairman,  President and Chief Executive  Officer Mason N. Carter, on
May 4, 1998,  at a price of $12.75 per share,  which  approximated  the  average
closing  price of the  Company's  common stock during the first quarter of 1998.
The Company extended a loan of $255,000 in connection with the purchase of these
shares  and  amended  a  prior  loan of  $105,000.  Mr.  Carter  has  agreed  to
restrictions on the sale of these shares.

     The new  promissory  note for  $360,000  is due May 4,  2003  and  interest
payments are due quarterly,  calculated at a variable interest rate based on the
prime rate of the Company's lending bank.  Payment of the loan is secured by the
pledge of the shares of Common Stock  purchased by Mr.  Carter with the proceeds
of the loan.

     As a result of the amendment to the terms of principal  amortization of the
prior loan, the amount of $105,000 is reflected as a reduction of  stockholders'
equity in the balance sheet.

                                      -5-

<PAGE>


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


                            INCOME STATEMENT SUMMARY
                            ------------------------
                                  (Unaudited)


The following table displays line items in the Consolidated Statements of
Income as a percentage of net sales.





                                                 Percentage of Net Sales
                                             -------------------------------
                                                       Quarter 1        
                                                  --------------------    
                                                  Thirteen Weeks Ended     
                                                  --- ----------------   
                                                  April 4,   March 29, 
                                                    1998        1997    
                                                  --------   --------   

Net sales....................................       100.0%     100.0%  
                                                    ------     ------   
Costs and expenses:
  Cost of sales..............................        55.6%      55.6%   
  Selling, general and
    administrative...........................        29.3%      33.5%       
  Research and development...................         3.6%       1.3%  
                                                    ------     ------   
                                                     88.5%      90.4%   
                                                    ------     ------     

Operating income.............................        11.5%       9.6%      
Interest and other income, net...............          .2%        .6%         
                                                    ------     ------      

Income before income taxes...................        11.7%      10.2%     

Provision for income taxes...................         4.3%       3.7%          
                                                    ------     ------     

Net income...................................         7.4%       6.5%     
                                                    ======     ======     



                                      -6-

<PAGE>



                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

                           
  Quarter ended April 4, 1998 compared to quarter ended March 29, 1997

     Results of  operations  reflect  increases  in: net sales of  $1,517,000 or
35.5%;  operating  income of $256,000 or 62.3%; net income of $150,000 or 54.0%;
and diluted net income of $.08 per share or 44.4%.

     The net sales increase was partially  attributable to delivering  shipments
against a larger firm order backlog with order release dates that coincided with
production and shipment schedules.

     Orders received for the first quarter 1998 of $6,061,000 increased $564,000
or 10.3%  compared to that of the first quarter of 1997, and the backlog of firm
unfilled  orders  increased  $489,000 or 5.2% to $9,943,000  for the same end of
quarter  comparisons.  Compared to year-end 1997,  backlog increased $185,000 or
1.9%.

     Cost of sales increased $843,000 or 35.5% and was unchanged as a percentage
of net sales. The primary reason for the increase was the effect of the increase
in sales revenue on cost of sales.  Also, a compensation  increase to the hourly
workforce became effective mid-year 1997, and additional manufacturing personnel
were hired for the Costa Rica manufacturing facility to concentrate on improving
delivery performance by reducing the number of late ship days in the backlog.

     Selling,  general and administrative  expenses increased $265,000 or 18.5%,
although as a percentage of net sales the expense  decreased  4.2% to 29.3% from
33.5%.  Increases in selling costs were related to additional sales  commissions
due to the increase in sales  revenue.  The  opening,  support and staffing of a
European  sales  office  also  added  to  higher  selling  costs.   General  and
administrative expenses partially increased due to compensation costs related to
the hiring of  additional  administrative  and  marketing  personnel  and higher
compensation  expense  resulting from last year's  mid-year  merit  increases to
certain employees.

     Research and  development  expenses for new products  were $211,000 for the
first  quarter of 1998,  an increase  of $154,000 or 270.2%  compared to $57,000
reported in 1997. Research and development  expenses in the prior year have been
reclassified to conform to the current presentation.

     Net income increased $150,000 or 54.0% to $428,000 for the first quarter of
1998  compared  to $278,000  reported in 1997.  Diluted net income per share was
$.26,  an  increase  of 44.4%  compared  to diluted net income per share of $.18
reported for the first quarter of last year. The diluted weighted average number
of common  shares  outstanding  for the first  quarter 1998  increased by 71,000
compared  to that of the first  quarter of the prior  year.  This  increase  was
primarily due to common stock issued from the exercise of stock  options  during
1997 and the increase in dilutive  securities  arising from higher average stock
prices  during the first  quarter of this year  compared to the first quarter of
the prior year.





                                      -7-


<PAGE>

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

     The Company's  financial  condition  remained  strong  throughout the first
quarter of 1998.  The Company had liquid  resources  comprised  of cash and cash
equivalents  (including  investments in  available-for-sale  securities in 1997)
totaling approximately  $2,500,000 compared to approximately $2,000,000 in 1997.
The Company's working capital was approximately $8,800,000 and its current ratio
was 4.2 at the end of the first  quarter 1998  compared to  $8,000,000  and 4.8,
respectively, in 1997.

     The Company's operating  activities generated cash flows of $695,000 in the
first quarter 1998 compared to $48,000 in 1997. Primary reasons for the increase
in  operating  cash  flows in 1998 are  higher  first  quarter  net income and a
decrease in inventories of $568,000 which was partially offset by an increase in
accounts  receivable of $913,000 as a result of higher first quarter 1998 sales.
The Company made net investments in property, plant and equipment of $658,000 in
the first quarter of 1998 compared to $382,000 in 1997.

     The Company paid cash  dividends of $151,000 in 1997 at the quarterly  rate
of $.10 per share.  The cash dividend was  eliminated by a decision of the Board
of Directors  (the  "Board") on August 28, 1997.  The Board  announced on May 5,
1998, the  declaration of a 10% stock dividend to  stockholders of record on May
15, 1998 to be distributed,  and payments for fractional shares made, on June 5,
1998.

     The Company has entered  into a $7,000,000  revolving  credit and term loan
agreement with Summit Bank, at one-half  percent below the bank's floating prime
rate. Up to $2,500,000 of borrowings may be used for capital  expenditures under
the term loan.  The full line is  available  for future  borrowing  needs of the
Company for working capital and general corporate purposes.

     Management  believes that with the liquid  resources and the unused line of
credit  available,   along  with  cash  flows  expected  to  be  generated  from
operations,   the  Company  will  have   sufficient   resources   for  currently
contemplated operations in 1998.

     The Company's  manufacturing  subsidiary in Costa Rica began  operations in
the second  half of 1996.  In January  1998,  the  subsidiary  moved to a larger
17,000 square-foot facility and has recently obtained ISO 9002 certification.

     The  Company's  capital   expenditures  for  new  projects  and  production
equipment are anticipated to exceed its depreciation  and amortization  expenses
in 1998.  The  Company  has issued  purchase  order  commitments  to  processing
equipment  manufacturing vendors for approximately $700,000 of capital equipment
and building  improvements.  The Company anticipates that such equipment will be
purchased and become operational and building improvements  completed during the
second half of 1998.




                                      -8-


<PAGE>
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Liquidity and Capital Resources (continued)

     The Company  recognizes the need to assure that its operations  will not be
adversely impacted by Year 2000 software failures.  The impact on operations has
been  evaluated and plans have been  formulated  to ensure Year 2000  compliance
before the end of 1998.  Beginning in 1998, existing  mission-critical  software
will be revised to process dates for 1999 and beyond  without any  disruption to
the business.  Software revisions will be performed by Company employees and the
total estimated cost for achieving Year 2000 compliance has not been, and is not
anticipated to be,  material to the Company's  financial  position or results of
operations.

     The  Company was  authorized  on November 1, 1996 to purchase up to 100,000
shares of its common stock,  depending on market  conditions,  and has purchased
4,100 shares to date under such authorization. There have been no repurchases of
common stock during 1997 or 1998.

     Periodically,  the Company  explores the  possibility of acquiring  similar
manufacturers of electronic devices or companies in related fields,  although it
currently has no definitive  plans or agreements.  Management  believes that any
such acquisitions and business operation expansion could be financed through its
liquid and capital resources currently available as previously  discussed and/or
through  additional  borrowing  or  issuance of equity or debt  securities.  The
additional  debt from any  acquisitions,  if  consummated,  would  increase  the
Company's  debt-to-equity  ratio and such debt or equity  securities  might,  at
least in the near term, have a dilutive effect on net income per share.

     Certain statements in this quarterly report are forward-looking  statements
based  on  current  management   expectations  and  are  subject  to  risks  and
uncertainties.  Factors  that could  cause  future  results to differ from these
expectations  include  general  economic  and industry  conditions,  competitive
products  and  pricing  pressures,  risks  relating to  governmental  regulatory
actions in  communications  and defense  programs,  and  inventory  risks due to
technological innovation.  Additional factors to which the Company's performance
is subject are described in the  Company's  reports filed from time to time with
the Securities and Exchange Commission.






            
                                       -9-

<PAGE>

PART II. OTHER INFORMATION


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

Exhibit No.


      10   Consulting Agreement between the Company and Arthur A. Oliner
             dated as of January 1, 1998.*

      11   Statement re: Computation of earnings per common share

      27   Financial Data Schedule for the First Quarter Ended April 4, 1998.

  (b)   Reports on Form 8-K.

        A Current  Report on Form 8-K was filed on February 26, 1998 reporting
        the Company's results of operations for the fourth quarter and 1997 
        fiscal year.
      
        A Current  Report on Form 8-K was filed on April 20, 1998  reporting the
        Company's Amendment to its By-laws.

        A Current Report on Form 8-K was filed on May 5, 1998 reporting the 
        Company's results of operations for the first quarter 1998, and the 
        declaration of a 10% stock dividend.

        * Indicates that exhibit is a management contract or compensatory 
        plan or arrangement.



                              

                                        -10-

<PAGE>

SIGNATURES

     Pursuant to the requirements of Section 13 or 15 (d) 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.


                                          MERRIMAC INDUSTRIES, INC.
                                          -------------------------
                                                (Registrant)

    Date: May 14, 1998               By: /s/ Mason N. Carter
                                         -------------------------------------
                                         Mason N. Carter             
                                         Chairman, President and 
                                         Chief Executive Officer
                                           

    Date: May 14, 1998               By: /s/ Robert V. Condon
                                         -------------------------------------
                                         Robert V. Condon
                                         Vice President, Finance, Treasurer,
                                         Secretary and Chief Financial Officer






                                      -11-