<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 Quarter ended September 27, 1997               Commission file No. 0-11201
                  ------------------                                   -------

                           MERRIMAC INDUSTRIES, INC.
-----------------------------------------------------------------------------
           (Exact name of the registrant 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                                07007-0986
-------------------------------                      ------------------------
      (Address of principal                                   (Zip code)
       executive offices)



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


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

           Class                               Outstanding at November 4, 1997
-----------------------------                  ------------------------------- 
Common Stock ($.50 par value)                             1,550,640






<PAGE>


PART I.     FINANCIAL INFORMATION

ITEM 1.     Financial Statements

                           MERRIMAC INDUSTRIES, INC.
                          CONSOLIDATED BALANCE SHEET 
                          ---------------------------
                                 (Unaudited)
                                                        Sept 27 
                                                          1997
                                                      -----------
ASSETS                                                         
------
Current Assets:
  Cash and cash equivalents .......................   $   974,390
  Available-for-sale securities ...................     1,336,014
  Accounts receivable .............................     3,426,988
  Inventories:
    Finished goods ................................       787,654
    Work in process ...............................     2,546,444
    Parts and raw materials .......................       955,909
                                                      -----------
      Total inventories ...........................     4,290,007

   Prepaid expenses ...............................       230,785
   Deferred tax assets ............................       945,338
                                                      -----------
      Total current assets ........................    11,203,522

Property, plant and equipment .....................    13,643,943
  Less accumulated depreciation ...................     9,865,592
                                                      -----------
      Net property, plant and equipment ...........     3,778,351

Deferred income taxes .............................        47,000
Other assets ......................................       123,095
                                                      -----------
      Total Assets ................................   $15,151,968
                                                      ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current Liabilities:
  Accounts payable ................................   $   914,591
  Accrued liabilities .............................     1,440,561  
  Income taxes payable ............................       263,827
                                                      -----------
      Total current liabilities ...................     2,618,979
 
Other liabilities..................................       355,629       
                                                      -----------
      Total liabilities ...........................     2,974,608 
                                                      ----------- 
Stockholders' equity:
  Common stock, par value $.50 per share:
    Authorized:  5,000,000 shares
    Issued:  2,638,498 shares .....................     1,319,249               
  Additional paid-in capital ......................     9,446,399
  Retained earnings ...............................    10,598,534 
  Unrealized holding gain on available-for-sale
   securities, less deferred tax effects ..........        40,243
                                                      -----------
                                                       21,404,425
  Less treasury stock at cost:
    Purchased: 1,074,839 shares ...................     9,227,065              
                                                      -----------
     Total stockholders' equity ...................    12,177,360
                                                      -----------
     Total Liabilities and Stockholders' equity ...   $15,151,968
                                                      ===========


See accompanying notes to consolidated financial statements.


                                     - 1 -


<PAGE>

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

                                   Quarter Ended           Year-to-Date     
                               ----------------------  ------------------------
                                  Thirteen Weeks         Thirty-nine  Weeks
                               ----------------------  ------------------------ 
                                 Sept 27    Sept 28     Sept 27     Sept 28    
                                   1997       1996        1997        1996     
                               ----------  ----------  -----------  -----------
Net sales .................... $4,983,793  $2,997,905  $14,245,236  $10,110,778
                               ----------  ----------  -----------  -----------
Cost and expenses:
  Cost of sales ..............  2,734,619   1,990,562    7,710,809    5,787,835
  Selling, general and
    administrative ...........  1,708,432   1,329,790    4,994,483    3,783,056
  Amortization of 
   intangible assets .........          -           -            -       77,568
  Restructuring charge (A) ...          -   1,526,709            -    1,526,709 
                               ----------  ----------  -----------  -----------
                                4,443,051   4,847,061   12,705,292   11,175,168
                               ----------  ----------  -----------  -----------

Operating income (loss) ......    540,742  (1,849,156)   1,539,944   (1,064,390)
Interest and other  
  income, net.................     23,273       5,899       70,917       80,385 
                               ----------  ----------  -----------  -----------
Income (loss) before 
  income taxes ...............    564,015  (1,843,257)   1,610,861     (984,005)
Provision (credit) for 
  income taxes ...............    214,000    (704,000)     605,000     (410,000)
                               ----------  ----------  -----------  -----------
Net income (loss) (A) ........ $  350,015 $(1,139,257) $ 1,005,861   $ (574,005)
                               ==========  ==========  ===========  ===========

Net income (loss) per 
  common share: 
  Primary (A) ................       $.21       $(.73)        $.63        $(.36)
                                     ====       =====         ====        =====
  Fully Diluted (A) ..........       $.21       $(.73)        $.60        $(.36)
                                     ====       =====         ====        =====
Cash dividend per share of
  common share ...............       $.10        $.10         $.30         $.30 
                                     ====        ====         ====        =====

Weighted average number of  
  shares outstanding:
  Primary ....................  1,643,135   1,559,906    1,607,162    1,591,802
  Fully Diluted ..............  1,672,993   1,564,609    1,665,869    1,595,455
                                =========   =========    =========    =========


See accompanying notes to consolidated financial statements.

(A) The restructuring  charge (adjusted from the amount  originally  reported in
the third  quarter  last year) net of related tax  benefits was $916,000 or $.57
per share in 1996.






                                      -2-
<PAGE>



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


                                                       Thirty-nine Weeks Ended
                                                      -------------------------
                                                         Sept 27       Sept 28 
                                                           1997         1996   
                                                      ----------     ----------
Cash flows from operating activities:
Net income (loss) ..................................  $1,005,861     $ (574,005)
                                                      ----------     ----------
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization...................     682,345        546,094
    Loss on available-for-sale securities...........           -         19,000
    Write-off of intangible assets..................           -        244,500
    Deferred compensation ..........................     106,530        223,000
    Deferred income taxes...........................           -       (381,252)
    Changes in operating assets and liabilities:
      Accounts receivable...........................  (1,576,446)       608,737
      Inventories...................................    (124,189)        24,829
      Other current assets..........................      41,025       (200,243)
      Other assets..................................     (92,655)        59,746
      Accounts payable..............................     163,828        230,453
      Accrued liabilities...........................     487,681        (79,820)
      Income taxes payable..........................     263,827       (323,549)
                                                      ----------     ----------
        Total adjustments...........................     (48,054)       971,495
                                                      ----------     ----------
Net cash provided by operating activities...........     957,807        397,490
                                                      ----------     ----------
Cash flows from investing activities:
  Purchase of capital assets.......................   (1,121,213)      (722,126)
  Proceeds from sales of capital assets............        2,257            980 
  Proceeds from sales of available-for-sale 
    securities.....................................         -         2,272,071 
  Purchase of available-for-sale securities........     (138,442)          -
                                                      -----------    ----------
Net cash provided by (used in) investing activities   (1,257,398)     1,550,925 
                                                      -----------    ----------
Cash flows from financing activities:
  Repurchase of 143,600 shares of common stock......         -       (1,520,830)
  Proceeds from the issuance of 52,749 and 20,304 
    shares of common stock.........................      467,444        147,287 
  Payment of dividends.............................     (459,044)      (466,689)
                                                      -----------    ----------
Net cash provided by (used) in financing activities        8,400     (1,840,232)
                                                      -----------    ----------
Net increase (decrease) in cash and cash equivalents    (291,191)       108,183
Cash and cash equivalents at beginning of year.....    1,265,581      2,295,186 
                                                      -----------    ----------
Cash and cash equivalents at end of period.........   $  974,390     $2,403,369 
                                                      ===========    ==========

Supplemental disclosures of cash flows information:                    
  Cash paid during the period for:
    Income taxes...................................   $  395,000     $  465,000
                                                      ==========     ==========


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  September  27,  1997 and its results of operations 
     and cash flows for the periods presented.

B.   Net Income Per Common Share

     Net income per common  share is based upon the weighted  average  number of
     common shares and common equivalent shares outstanding during the period. 
     Common equivalent  shares  arise  from  the  dilutive  effects  of  shares
     that may be purchased under stock option and purchase plans.

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  1997 is the next) is added
     to the  fourth  quarter making such quarter consist of 14 weeks.

D.   Investments in available-for-sale securities

     The cost of the Company's  portfolio of  available-for-sale  investments in
     marketable  equity  securities  at September  27, 1997 is reconciled to the
     fair market  value,  which was also the carrying  value,  of the  portfolio
     as follows:
 
                                                 Sept 27
                                                  1997
                                               ----------
     Cost                                      $1,295,771
     Gross unrealized gains                        40,243
     Gross unrealized losses                            -
                                               ----------
     Fair market value                         $1,336,014
                                               ==========


     The net unrealized gains of $40,243 at September 27, 1997 are included as a
     separate component of stockholders' equity, net of deferred tax effects.

E.   Restructuring 

     The  restructuring  of  engineering   responsibilities  and  its  attendant
re-focus of product  lines  impacted the valuation of  inventories.  A review of
inventories,  certain  intangibles  arising from  acquired  product  designs,  a
non-compete  agreement,  and deferred compensation for a retiring senior officer
resulted in aggregate charges (adjusted from those amounts  originally  reported
in the third  quarter last year) of  $1,527,000,  and charges net of related tax
benefits of $916,000 or $.57 per share,  to  operations  in the third quarter of
1996.



                                      -4-

<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 Ended         Year-to-Date
                                    ----------------    ----------------
                                    Thirteen Weeks      Thirty-nine Weeks
                                    ----------------    ----------------
                                    Sept 27  Sept 28    Sept 27  Sept 28  
                                      1997     1996       1997     1996     
                                    -------  -------    -------  -------

Net sales.........................  100.0%   100.0%     100.0%   100.0%   
                                    -----    -----      -----    ----- 
Costs and expenses:
  Cost of sales...................   54.9     66.4       54.1     57.2     
  Selling, general and
    administrative................   34.3     44.4       35.1     37.4
  Amortization of intangible 
    assets........................    -        -          -         .8     
  Restructuring charge (A) .......    -       50.9        -       15.1
                                    -----    -----      -----    -----
                                     89.2    161.7       89.2    110.5     
                                    -----    -----      -----    -----

Operating income (loss) ..........   10.8    (61.7)      10.8    (10.5)    
Interest and other income, net....     .5       .2         .5       .8      
                                    -----    -----      -----    -----

Income (loss) before income taxes.   11.3    (61.5)      11.3     (9.7)    

Provision (credit) 
  for income taxes................    4.3    (23.5)       4.2     (4.1)      
                                    -----    -----      -----    -----

Net income (loss) (A).............    7.0%   (38.0)%      7.1%    (5.6)%   
                                    =====    =====      =====    ===== 


     (A)  The  effects  on  net  income   (loss)  of  the  third   quarter  1996
restructuring  charge (adjusted from the amount originally reported in the third
quarter last year), net of related tax benefits,  were 30.6% for the quarter and
9.0% year-to-date in 1996. Excluding the restructuring charge net of related tax
benefits,  the 1996 quarter and year-to-date  percentages would have been (7.4%)
and 3.4%, respectively.









                                      -5-

<PAGE>



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

                           
Third quarter and nine months 1997 compared to 1996

     Results of operations  for the quarter  reflect  increases in: net sales of
$1,986,000 or 66.2%; operating income (before restructuring charge) of $863,000;
operating  income  (after  restructuring  charge) of  $2,390,000;  net income of
$1,489,000;  and net income per share on a fully  diluted  basis of $.94 to $.21
per  share.  The  restructuring  charge  (adjusted  from the  amount  originally
reported  in the third  quarter  last year),  was  $1,527,000  ($916,000  net of
related tax benefits or $.57 per share) in the third quarter 1996.

     For the first nine months,  results of operations reflect increases in: net
sales of $4,134,000 or 40.9%;  operating income (before restructuring charge) of
$1,078,000;  operating income (after  restructuring  charge) of $2,604,000;  net
income of $1,580,000;  and net income per share on a fully diluted basis of $.96
per share to $.60 per share.  Nine-month net income per share on a primary basis
was $.03 more than net income per share on a fully diluted basis.

     The  increases  in net  sales  were  partially  attributable  to  increased
shipments  of  orders  from  a  higher  order   backlog,   process   improvement
initiatives, customer service focus and reduction of total-cycle time to market.

     Nine-month  incoming orders received for comparable time periods  increased
$4,700,000 or 41.7%. The backlog of firm unfilled orders increased $3,300,000 or
48.4% to $10,134,000  compared to the same time last year.  Compared to year-end
1996,  backlog is up $1,903,000  or 23.1% which  reflects  increased  demand for
Company products.

     As a result of the increases in the quarter and nine month net sales,  cost
of sales increased $744,000 or 37.4% for the quarter and $1,923,000 or 33.2% for
nine months.  Cost of sales as a  percentage  of net sales  decreased  11. 5% to
54.9% for the quarter and 3.1% to 54.1% for nine months. The decrease in cost of
sales as a percentage of net sales for the quarter and nine months when compared
to the prior year is the result of volume related  improved  efficiencies in the
manufacturing  cycle,  a higher  concentration  of productive  labor utilized in
completing  customer orders and a reduction of  non-productive  labor associated
with training and instruction programs instituted during the prior year.

     Selling,  general and  administrative  expenses increased $379,000 or 28.5%
for the quarter and $1,211,000 or 32.0% for nine months,  and as a percentage of
net sales  decreased  10.1% to 34.3% for the quarter and decreased 2.4% to 35.1%
for nine  months,  as the fixed  portion of such costs are being  measured  on a
percentage  basis to the higher sales  revenue.  Increases in selling costs were
related to higher sales commissions due to increased sales revenues. General and
administrative  expenses  partially  increased  due to  additional  compensation
expenses related to the hiring of additional administrative personnel and higher
compensation expenses resulting from last year's mid-year merit increases to all
employees. Certain transitional costs associated with further restructuring also
increased selling, general and administrative expenses. Research and development
expenses  for new  products  were  $162,000 for the quarter and $344,000 for the
first nine months of 1997 which  increased  $118,000  or 268.2% and  $154,000 or
81.1%, respectively.







                                      -6-


<PAGE>

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


Third quarter and nine months 1997 compared to 1996 (continued)

     Third  quarter 1997 fully diluted net income per share was $.21 compared to
the third quarter net loss of $.73 per share after the  restructuring  charge in
the prior year. Net income of $350,000 for the third quarter of 1997 compares to
the net loss of $1,139,000 after the restructuring charge in 1996. For the first
nine months of 1997,  fully  diluted net income per share  increased to $.60 per
share  compared to the $.36 per share loss in the prior year. Net income for the
first nine  months of 1997 was  $1,006,000  compared to the net loss of $574,000
after the restructuring charge reported in 1996.

     The fully diluted weighted average number of common shares  outstanding for
the first nine months of 1997 increased by 71,000  compared to that of the prior
year. This increase was due mainly to the "in-the-money" value of Company issued
stock  options,  which  resulted  from higher  Company  stock prices  during the
quarter,  and  contributed  to the  inclusion of an  additional  108,000  common
equivalent  shares  produced from the assumed  conversion of the stock  options.
Common  stock  repurchases  during  1996  partially  offset this  increase.  The
increase in the number of weighted  shares  outstanding  at the end of the third
quarter  impacted  nine-month  primary  net income per share of $.63 by $.03 per
share,  causing  nine-month  fully  diluted  net  income per share of $.60 to be
reported.


Liquidity and Capital Resources

     The Company's financial condition remained strong throughout the first nine
months of 1997.  The  Company  had  liquid  resources  comprised  of cash,  cash
equivalents  and   investments  in   available-for-sale   securities,   totaling
approximately  $2,300,000  compared to  approximately  $2,400,000  in 1996.  The
Company's  working  capital stood at $8,600,000 and its current ratio was 4.3 at
the end of the third quarter  compared to $8,000,000 and 6.3,  respectively,  in
1996.

     The Company's operating  activities generated cash flows of $958,000 in the
first nine months of 1997 compared to $397,000 in 1996.  Primary reasons for the
increase in cash flows in 1997 are increases in net income plus depreciation and
current   liabilities   which  offset  increases  in  accounts   receivable  and
inventories.   Company  investments  in  property,   plant  and  equipment  were
$1,119,000  in the first  nine  months of 1997  compared  to  $721,000  in 1996.
Proceeds  from the exercise of stock  options were $467,000 for 52,700 shares of
common stock in 1997 compared to $147,000 for 20,300 shares in 1996. The Company
paid cash  dividends  of  $459,000  in 1997  compared to $467,000 in 1996 at the
quarterly rate of $.10 per share.







                                      -7-


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


Liquidity and Capital Resources (continued)

     The Company  issued a press release on August 28, 1997  regarding the Board
of  Directors  review of its strategy  for growth and  relationship  to its cash
dividend  policy.  Their  decision  was to reinvest  all future  earnings in the
Company and thus  eliminated the cash dividend.  During the first nine months of
1996 the Company  made open  market  purchases  of 143,000  shares of its common
stock at a cost of $1,521,000. No shares have been repurchased in 1997.

     The Company has recently  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,  and the full line is  available  for future
borrowing needs 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  1997.  Expansion  of the  Company's  manufacturing
facility in Costa Rica, that became  operational during the second half of 1996,
is currently underway with completion anticipated early next year. The Company's
capital expenditures for new projects and production equipment have exceeded its
depreciation and amortization expenses in 1997.

     The  Company was  authorized  on November 1, 1996 to purchase up to 100,000
shares of its common stock from time-to-time depending on market conditions, and
has purchased 4,100 shares to date under such authorization. 

     From time-to-time the Company explores the possibility of acquiring similar
manufacturers  of  electronic  devices,  although it currently has no definitive
plans or agreements. Management believes that any such acquisitions and business
operation  expansion could be financed through the liquid and capital  resources
currently available as previously  discussed and/or through additional borrowing
or issuance of equity or debt securities.

            
                                       -8-

<PAGE>

PART II.  OTHER INFORMATION   




Item 6.  Exhibits and Reports on Form 8-K
         Exhibit No.
         -----------
               (11)   - Statement re:  Computation of Earnings per Share

          (b) Reports Filed by the Registrant on Form 8-K

              August 28, 1997  - Reporting the elimination of the cash dividend.

              November 6, 1997 - Reporting the appointment of two new outside 
                                 members to its Board of Directors, and the 
                                 increase in the number of its Board seats to 
                                 seven.

















                               

                                        -9-

<PAGE>


                            
      

Exhibit (11)


                           MERRIMAC INDUSTRIES, INC.
                       COMPUTATION OF EARNINGS PER SHARE
                       ---------------------------------
                                  (Unaudited)


                                                                      
                                              Number of Weeks Ended
                                          ----------------------------
                                            Thirteen       Thirty-nine
                                          -----------      -----------
                                            Sept 27         Sept 27   
                                              1997            1997    
                                          -----------      -----------

Net income ............................     $ 350,015       $1,005,861
                                          ===========      ===========


                                           PRIMARY EARNINGS PER SHARE
                                           ---------------------------

Average number of shares outstanding        
   Common stock........................     1,539,989        1,527,455
   Stock options (1)...................       103,146           79,707
                                            ---------        ---------

Shares outstanding as adjusted.........     1,643,135        1,607,162
                                            =========        =========

Net income per common share and common
   equivalent share....................          $.21             $.63
                                                 ====             ====


                                         FULLY DILUTED EARNINGS PER SHARE
                                         --------------------------------

Average number of shares outstanding
   Common stock........................     1,539,989        1,527,455
   Stock options (1)...................       133,004          138,414
                                            ---------        ---------

Shares outstanding as adjusted.........     1,672,993        1,665,869
                                            =========        =========

Net income per common share assuming
   full dilution.......................          $.21             $.60
                                                 ====             ====


(1)  Represents additional shares resulting from assumed conversion of stock
     options less shares purchased with the proceeds thereof.               
                           










                                       -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: November 7, 1997           By /s/ Mason N. Carter
                                         -------------------------------------
                                         Mason N. Carter             
                                         Chairman, President and 
                                         Chief Executive Officer
                                           

    Date: November 7, 1997           By /s/ Robert V. Condon
                                         -------------------------------------
                                         Robert V. Condon
                                         Vice President, Finance, Treasurer,
                                         Secretary and Chief Financial Officer






















                                      -11-

<PAGE>