U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10 - QSB

(Mark One)

(X)  Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
     Act of 1934.

           For the quarterly period ended March 31, 1999
                                          --------------
                                       or

( )  Transition  report  pursuant  to  section  13 or  15(d)  of the  Securities
     Exchange Act of 1934.

           For the Transition period from _____to  _____


                          Commission file number 0-7441

                           SIERRA MONITOR CORPORATION

        (Exact name of small business issuer as specified in its charter)


         California                                   95-2481914
         (State or other jurisdiction of              (I.R.S. Employer
         incorporation or organization)               Identification
                                                      Number)

                                1991 Tarob Court
                           Milpitas, California 95035

              (address and zip code of principal executive offices)


                                 (408) 262-6611
              (Registrant's telephone number, including area code)

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  and 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 _____

The number of shares of the  issuer's  common stock  outstanding,  as of May 12,
1999 was 10,967,588.

Transitional Small Business Disclosure Format: Yes ___; No X___

                                                                    Page 1 of 10

<PAGE>

<TABLE>

                                                    PART I: FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                                                      SIERRA MONITOR CORPORATION

                                                           Balance Sheets

<CAPTION>

                                                                                                March 31,               December 31,
                                                                                                  1999                      1998
                                                                                               -----------              -----------
                                   Assets                                                      (Unaudited)
<S>                                                                                            <C>                          <C>    
Current assets:
      Cash and cash equivalents                                                                $   487,068                  393,667
      Short-term investments                                                                        24,066                  245,522
      Trade receivables, less allowance for doubtful                                             1,119,558                1,123,073
          accounts of $127,738 in 1999 and $125,488
          in 1998
      Notes receivable                                                                              32,920                   35,002
      Inventories                                                                                  962,736                  945,189
      Prepaid expenses                                                                              88,847                   94,107
      Deferred income taxes                                                                        179,636                  179,636
                                                                                               -----------              -----------

                        Total current assets                                                     2,894,831                3,016,196

Property and equipment, net                                                                        239,086                  232,600
Deferred income taxes                                                                              113,635                  113,635
Other assets                                                                                       494,150                  345,776
                                                                                               -----------              -----------
                                                                                               $ 3,741,702                3,708,207
                                                                                               ===========              ===========

                Liabilities and Shareholders' Equity

Current liabilities:
      Accounts payable                                                                         $   342,425                  295,274
      Accrued compensation expenses                                                                304,840                  281,426
      Other current liabilities                                                                     83,192                   56,522
      Bank loan                                                                                    100,000                     --
      Income taxes payable                                                                            --                    105,052
                                                                                               -----------              -----------
                        Total current liabilities                                                  830,457                  738,274

Shareholders' equity:
      Common stock                                                                               3,159,944                3,159,944
      Accumulated deficit                                                                         (198,874)                (136,771)
      Note receivable from shareholders                                                            (49,825)                 (53,240)
                                                                                               -----------              -----------
                        Total shareholders' equity                                               2,911,245                2,969,933
                                                                                               -----------              -----------
                                                                                               $ 3,741,702                3,708,207
                                                                                               ===========              ===========

<FN>
See accompanying notes to financial statements.
</FN>
                                                                                                                        Page 2 of 10
</TABLE>

<PAGE>


                           SIERRA MONITOR CORPORATION

                            Statements of Operations

                                   (Unaudited)


                                                     For the three months ended
                                                    ----------------------------
                                                      March 31,       March 31,
                                                        1999            1998
                                                    ------------    ------------

Net sales                                           $  1,659,288       1,533,424

Cost of goods sold                                       633,074         568,976
                                                    ------------    ------------
                  Gross profit                         1,026,214         964,448
                                                    ------------    ------------

Operating expenses
      Research and development                           214,308         124,333
      Selling and marketing                              573,438         452,387
      General and administrative                         309,400         273,201
                                                    ------------    ------------
                                                       1,097,146         849,921
                                                    ------------    ------------

                  Income (loss) from operations          (70,932)        114,527

Other income                                                  34          38,349
Interest income                                            8,793          10,544
                                                    ------------    ------------

               Income (loss) before income taxes         (62,105)        163,420
Income taxes                                                --            50,660
                                                    ------------    ------------
                Net income (loss)                   $    (62,105)        112,760
                                                    ============    ============
Net income (loss) per share - basic                 $      (0.01)           0.01
                                                    ============    ============
Net income (loss) per share - diluted               $       --              0.01
                                                    ============    ============

Weighted-average number of shares used in per
    share computations:
         Basic                                        10,967,588      10,566,263
                                                    ============    ============
         Diluted                                            --        10,848,584
                                                    ============    ============


See accompanying notes to financial statements.


                                                                    Page 3 of 10
<PAGE>


<TABLE>

                                                     SIERRA MONITOR CORPORATION

                                                      Statements of Cash Flows

                                                             (Unaudited)
<CAPTION>

                                                                                                        For the three months ended
                                                                                                     -------------------------------
                                                                                                     March 31,            March 31,
                                                                                                       1999                 1998
                                                                                                     ---------            ---------
<S>                                                                                                  <C>                    <C>    
Cash flows from operating activities:
       Net income (loss)                                                                             $ (62,105)             112,760
       Adjustments to reconcile net income (loss) to net cash used
       in operating activities:
              Depreciation and amortization                                                             57,429               22,396
              Allowance for doubtful accounts                                                            2,250                3,565
              Change in items affecting operations
                 Trade and notes receivables                                                             3,347             (192,775)
                 Inventories                                                                           (17,547)            (238,215)
                 Prepaid expenses                                                                        5,260              (41,068)
                 Accounts payable                                                                       47,151              259,901
                 Accrued compensation expenses                                                          23,414              (10,085)
                 Other current liabilities                                                              26,670                9,341
                 Income taxes payable                                                                 (105,051)               6,805
                                                                                                     ---------            ---------
                  Net cash used in operating activities                                                (19,182)             (67,375)
                                                                                                     ---------            ---------

Cash flows from investment activities:
       Capital expenditures                                                                            (42,376)             (34,738)
       Short term investments                                                                          221,456               (4,923)
       Acquisition of business assets                                                                 (171,828)                --
       Other assets                                                                                      1,916                 --
                                                                                                     ---------            ---------
                  Net cash provided by (used in) investing
                  activities                                                                             9,168              (39,661)
                                                                                                     ---------            ---------

Cash flows from financing activities:
       Proceeds from bank borrowings, net                                                              100,000                 --
       Repayment of shareholder notes receivable                                                         3,415                1,561
                                                                                                     ---------            ---------
                   Net cash provided by financing activities                                           103,415                1,561
                                                                                                     ---------            ---------
Net increase (decrease) in cash and cash equivalents                                                    93,401             (105,474)
Cash and cash equivalents at beginning of period                                                       393,667              297,485
                                                                                                     ---------            ---------
Cash and cash equivalents at end of period                                                           $ 487,068              192,011
                                                                                                     =========            =========



<FN>
See accompanying notes to financial statements.
</FN>
                                                                                                                        Page 4 of 10
</TABLE>

<PAGE>


                           SIERRA MONITOR CORPORATION

                        Notes to the Financial Statements

                                 March 31, 1999

Basis of Presentation

      The  unaudited  financial  statements  have been  prepared by the Company,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been omitted pursuant to such SEC rules and regulations;  nevertheless, the
Company  believes  that the  disclosures  are  adequate to make the  information
presented not misleading. These financial statements and the notes hereto should
be read in conjunction with the financial  statements and notes thereto included
in the Company's  Annual  Report on Form 10-KSB for the year ended  December 31,
1998  which was  filed  March 30,  1999.  In the  opinion  of the  Company,  all
adjustments,  including normal recurring adjustments necessary to present fairly
the financial  position of Sierra  Monitor  Corporation as of March 31, 1999 and
the results of its  operations  and cash flows for the quarter then ended,  have
been  included.  The  results  of  operations  for the  interim  period  are not
necessarily indicative of the results for the full year.

Accounting Policies

      There have been no  changes in  accounting  policies  used by the  Company
during the quarter ended March 31, 1999.

Summary of Business

      Sierra Monitor Corporation ("SMC" or the "Company") was founded in 1978 to
design and develop hazardous gas monitoring  devices for protection of personnel
and facilities in industrial work places. In addition to gas monitoring  systems
the Company also manufactures  microprocessor  based systems used to monitor and
control environmental conditions in small, remote,  structures used for cellular
and hard wire telephone equipment. The Company also manufactures a product known
as a Communications Bridge. The Communications Bridge enables electronic control
systems to communicate with each other,  generally over Ethernet,  even when the
systems use non compatible data storage and transfer protocols.

      Products  manufactured  by the Company are sold  primarily  to oil and gas
drilling and refining companies,  chemical plants, waste-water treatment plants,
telecommunications  companies,  building  control  systems,  parking garages and
landfill rehabilitation projects.

Inventories

A summary of inventories follows:

                                                 March 31,          December 31,
                                                   1999                   1998
                                                ---------               -------

                  Raw Materials                 $ 397,290               348,032

                  Work-in-process                 373,200               411,846

                  Finished goods                  192,246               185,311
                                                ---------               -------

                                                $ 962,736               945,189
                                                =========               =======

                                                                    Page 5 of 10
<PAGE>

<TABLE>
Net Income (loss) per share

      In 1997,  the  Company  adopted  SFAS No.  128,  Earnings  per  Share.  In
accordance  with SFAS No. 128, basic EPS is computed using the weighted  average
number of common shares outstanding  during the period.  Diluted EPS is computed
using the  weighted-average  number of common  and  dilutive  common  equivalent
shares outstanding during the period.  Dilutive common equivalent shares consist
of common stock issuable upon exercise of stock options using the treasury stock
method.  No adjustments to earnings / (loss) were made for purposes of per share
calculations.  The  following  is a  reconciliation  of the shares  using in the
computation  of basic and diluted  EPS for the periods  ended March 31, 1999 and
1998 respectively:

<CAPTION>
                                                                                       1999                     1998

<S>                                                                              <C>                      <C>       
      Basic  EPS  -  weighted-average   number  of  common  shares                            
          outstanding                                                            10,967,588               10,566,263

      Effect of dilutive common  equivalent shares - stock options                            
          outstanding                                                                     0                  282,321
                                                                                 ----------               ----------

      Diluted EPS -  weighted-average  of common shares and common                            
          equivalent shares outstanding                                          10,967,588               10,848,584
                                                                                 ==========               ==========
</TABLE>


Diluted EPS as of 3/31/99 does not include  273,203  stock  options  because the
inclusion of such stock options would be antidilutive.


Comprehensive Income

      The company has no significant  components of other  comprehensive  income
and,  accordingly,  comprehensive  income  is the  same  as net  income  for all
periods.

                                                                    Page 6 of 10
<PAGE>


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Results of Operations:

      For the three months ended March 31, 1999 Sierra Monitor  Corporation (the
"Company") reported net sales of $1,659,288 compared to $1,533,424 for the three
months  ended March 31, 1998.  The results for the first  quarter of fiscal 1999
represent  an 8.2%  increase  from the same period in the prior  year.  Sales of
products for telephone company  applications,  and sales of protocol  conversion
devices increased  compared to the first quarter of 1998. Sales of gas detection
systems were lower than the first quarter of 1998  primarily due to lower orders
for large systems.

      Gross  profit  for the  three  month  period  ended  March  31,  1999  was
$1,026,214 or 61.8% of net sales, compared to $964,448 or 62.9% of net sales, in
the same period in the previous  year.  The lower gross margin is due to product
mix. There were no abnormal changes in material and labor costs.

       Expenses  for  research  and  development,   which  include  new  product
development  and engineering to sustain  existing  products,  were $214,308,  or
12.9% of net sales,  for the three month period  ended March 31, 1999,  compared
with  $124,333,  or 8.1% of net sales,  in the  comparable  period in 1998.  The
higher research and development expenses were undertaken to continue development
of products and product  options  identified as key to future sales growth.  The
new products  included a master  controller known as the Sentry  Commander,  and
specialized gas sensors to be sold to the  semiconductor  industry.  The product
options are primarily  software  programs  known as protocol  drivers.  Protocol
Drivers are software programs which enable the Company's  Communications  Bridge
to share data between instruments which communicate in non-compatible protocols.
The Company intends to continue  development of an extensive library of Protocol
Drivers and therefore expects engineering expenses to remain, at least, at their
current levels.

      Selling and marketing  expenses for the three month period ended March 31,
1999 were $573,438 or 34.6% of net sales,  compared to $452,387, or 29.5% of net
sales,  in the same period in the prior year.  The increase in selling costs is,
in  part,  due to the  addition,  since  first  quarter  of 1998,  of two  sales
professionals  to allow focused efforts in the telephone  industry.  Commissions
paid to independent sales representatives were also higher compared to the first
quarter of 1998. Commissions,  as a percentage of sales, vary periodically based
on product mix, level of discounting and channels of distribution.

      General and  administrative  expenses  for the first  quarter of 1999 were
$309,400 or 18.6% of net sales  compared to $273,201 or 17.8% in the same period
in the prior year.  Increases in salary and benefit  expenses  and  depreciation
contributed to the higher general and administrative expenses.

      Net loss for the three  month  period  ended March 31, 1999 was $62,105 or
3.7% of net sales,  compared  with a net profit of $112,760 or 7.5% of net sales
for the same period in the prior year. The loss is due to lower margins combined
with higher operating  expenses described above. The Company believes that it is
necessary to incur the higher operating costs to provide the  infrastructure for
development and support of future sales increases.

                                                                    Page 7 of 10
<PAGE>

      On  February  1, 1999 the  Company  acquired  specified  assets of Montech
Holdings Inc.,  ("Montech") a Florida  Corporation.  The acquired assets include
certain   know  how,   manufacturing   designs,   customer   lists  and  related
documentation  related to a product  originally  known as the MC-25  Environment
Controller.  The MC-25 has been assimilated into the Company's  existing line of
Environmental  Controllers  which are sold for telephone  company  applications.
Montech and Sierra  Monitor served  generally the same customer base.  Under the
agreement  Montech has agreed not to compete for a period of three years. On the
effective date,  February 1, 1999, two employees of Montech became  employees of
the Company.

      The total cost of the acquisition, including consideration paid to Montech
and related expenses, was $171,828. At March 31, 1999, approximately $150,000 of
the acquisition cost had been paid and the balance was payable within 30 days.

Liquidity and Capital Resources:

      During the period  ended March 31, 1999,  the  Company's  working  capital
decreased by $213,548  compared to December  31,  1998.  The decrease in working
capital is primarily due to the acquisition  described above. At March 31, 1999,
cash and cash  equivalents and short term  investments,  totaled  $511,134.  The
short term  investments  consist  of  certain  Federal  Agency  Securities  with
original  maturities  greater than 90 days.  The Company has  borrowed  $100,000
against  its  $250,000  line of credit  with its  commercial  bank.  The Company
believes that its current capital  resources are sufficient to support  existing
and anticipated levels of business for at least the next twelve months.

Year 2000 Planning.

      Management  implemented an enterprise-wide  program in 1997 to prepare for
the year 2000 "date change". The program includes  verification of the Company's
Information  Technology (IT) systems, all microprocessor based products,  vendor
capabilities and various internal systems.

       The IT system was replaced in September 1998.  Because the replacement of
the IT system was a planned event, and was not  accelerated,  the Company is not
considering that cost as a separate year 2000 expense.  The cost of confirmation
of the new IT system, was a year 2000 expense.

      Microprocessor based products manufactured by the Company are being tested
for  operation  through the data change  period.  Also,  clock chips and related
circuits are being verified by design engineering.  As a result of testing,  the
Company anticipates that none of its products will cause a year 2000 problem for
users.  Since the Company's  products are  frequently  employed as components in
larger monitoring and control systems it is not possible for the Company to test
customer systems for  compatibility.  The Company has advised its customers that
system level testing is beyond the scope of the Company's  verification and that
customers should perform independent verification testing.

      All  materials  vendors are being  surveyed  for their  ability to provide
materials  and to continue  their  operations  beyond the date  change.  Vendors
receive a questionnaire which is evaluated to determine if further action should
be  taken  by the  Company.  The  company  presently  believes  that  all of its
materials  and  services  vendors  will be able to operate and supply  materials
beyond the date change.

      Internal systems generally include planning and tracking systems developed
using software  packages  supplied by third parties.  All essential  systems are
being tested to insure that they operate and calculate correctly beyond the date
change.

                                                                    Page 8 of 10
<PAGE>

      The total cost of the preparation and  implementation  of the verification
program and  corrective  actions is  estimated  to be less than  $100,000 and is
being funded  through  operating  cash flow. A  significant  proportion of these
costs are not likely to be  incremental  costs to the  Company,  but rather will
represent redeployment of existing technical and personnel resources.

      Although there are presently no known year 2000 events which would have an
impact on the Company's  ability to continue its current  operations,  there are
unknown  factors,  such as loss of utility supplies or banking  problems,  which
could  have a broad  impact  on the  Company  and  its  customers.  The  Company
currently does not believe it practical to develop  contingency plans related to
these risks.

Future Results:

      The  Company's  future  operating  results  may be affected by a number of
factors,  including  general  economic  conditions  in both foreign and domestic
markets,  cyclical factors affecting the Company's  industry,  lack of growth in
the Company's  end-markets,  and the Company's ability to develop,  manufacture,
and sell both new and existing products at a profitable but competitive price.

                                                                    Page 9 of 10
<PAGE>


                           PART II: OTHER INFORMATION

Item 1.           Legal Proceedings - N/A

Item 2.           Changes in Securities - N/A

Item 3.           Defaults Upon Senior Securities - N/A

Item 4.           Submission of Matters to a Vote of Security Holders - N/A

Item 5.           Other Information - N/A

Item 6.           Exhibits and Reports on Form 8-K

                       (a)   Exhibits.
                                  10.5      Assignment of Intellectual Property,
                                            Transfer  of Rights  and Asset
                                            Purchase Agreement
                                  27.0      Financial Data Schedule

                       (b)   Reports on Form 8-K.
                                  None.


                                    SIGNATURE

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.


                                              SIERRA MONITOR CORPORATION
                                              ----------------------------------
                                              Registrant

Date:        May 13, 1998              By:      /s/ Gordon R. Arnold
                                              ----------------------------------
                                              Gordon R. Arnold
                                              President
                                              Chief Financial Officer


                                                                   Page 10 of 10