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 June 30, 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 August 7,
1999 was: 10,967,588

Transitional Small Business Disclosure Format: Yes    ; No  x
                                                  ----     ----

                                                                    Page 1 of 11
<PAGE>



                                    PART I: FINANCIAL INFORMATION


                                    ITEM 1. FINANCIAL STATEMENTS

                                     SIERRA MONITOR CORPORATION
<TABLE>
                                           Balance Sheets

                                             (Unaudited)
<CAPTION>
                                                                       June 30,        December 31,
                                Assets                                   1999              1998
                                                                     -----------       -----------
<S>                                                                  <C>                 <C>
Current assets
        Cash and cash equivalents                                    $   282,940           393,667
        Short-term investments                                              --             245,522
        Trade receivables, less allowance for doubtful accounts          976,545         1,123,073
           of $130,026 in 1999 and $125,488 in 1998
        Notes receivable                                                  31,107            35,002
        Inventories                                                    1,008,955           945,189
        Prepaid expenses                                                 126,617            94,107
        Deferred income taxes                                            205,372           179,636
                                                                     -----------       -----------
                            Total current assets                       2,631,536         3,016,196
Property and equipment, net                                              223,757           232,600
Deferred income taxes                                                    113,216           113,635
Other assets                                                             465,600           345,776
                                                                     -----------       -----------
                                                                     $ 3,434,109         3,708,207
                                                                     ===========       ===========

                   Liabilities and Shareholders' Equity
Current liabilities
        Accounts payable                                             $   274,410           295,274
        Accrued expenses                                                 315,845           281,426
        Other current liabilities                                         26,018            56,522
        Income taxes payable                                                --             105,052
                                                                     -----------       -----------
                            Total current liabilities                    616,273           738,274
                                                                     -----------       -----------
Shareholders' equity
        Common stock                                                   3,159,944         3,159,944
        Accumulated deficit                                             (295,255)         (136,771)
        Notes receivable from shareholders                               (46,853)          (53,240)
                                                                     -----------       -----------
                            Total shareholders' equity                 2,817,836         2,969,933
                                                                     -----------       -----------
                                                                     $ 3,434,109         3,708,207
                                                                     ===========       ===========
<FN>
See the accompanying notes to the financial statements.
</FN>
</TABLE>

                                                                    Page 2 of 11
<PAGE>

                                              SIERRA MONITOR CORPORATION
<TABLE>
                                               Statements of Operations

                                                      (Unaudited)


<CAPTION>
                                                       Three months ended June 30,           Six months ended June 30,
                                                         1999               1998              1999               1998
                                                    ------------       ------------      ------------       ------------
<S>                                                 <C>                  <C>               <C>                <C>
Net sales                                           $  1,511,452          2,064,115         3,170,740          3,597,539

Cost of goods sold                                       589,719            967,336         1,222,793          1,536,312
                                                    ------------       ------------      ------------       ------------

        Gross profit                                     921,733          1,096,779         1,947,947          2,061,227
                                                    ------------       ------------      ------------       ------------

Operating expenses
    Research and development                             188,971            165,498           403,279            289,831
    Selling and marketing                                565,666            494,119         1,139,101            946,505
    General and administrative                           311,287            283,134           620,687            556,336
                                                    ------------       ------------      ------------       ------------
                                                       1,065,924            942,751         2,163,069          1,792,672
                                                    ------------       ------------      ------------       ------------
        Income (loss) from operations                   (144,191)           154,028          (215,122)           268,555

Other income                                                --                 --                  34             38,349
Interest income                                            3,820              5,350            12,613             15,894
                                                    ------------       ------------      ------------       ------------

        Income (loss) before income taxes               (140,371)           159,378          (202,473)           322,798

Income tax (benefit) expense                             (43,989)            49,407           (43,989)           100,067
                                                    ------------       ------------      ------------       ------------

        Net income (loss)                           $    (96,382)           109,971          (158,484)           222,731
                                                    ============       ============      ============       ============

Net income (loss) per share - basic                 $      (0.01)              0.01             (0.01)              0.02
Net income (loss) per share - diluted               $      (0.01)              0.01             (0.01)              0.02
                                                    ============       ============      ============       ============

Weighted average number of shares used in per
share computations
                                        Basic:        10,967,588         10,566,263        10,967,588         10,566,263
                                      Diluted:        10,967,588         11,169,202        10,967,588         11,015,498
                                                    ============       ============      ============       ============
<FN>
See the accompanying notes to the financial statements.
</FN>
</TABLE>

                                                                    Page 3 of 11
<PAGE>




                                              SIERRA MONITOR CORPORATION
<TABLE>
                                               Statements of Cash Flows

                                                      (Unaudited)

<CAPTION>
                                                                Three months ended               Six months ended
                                                                     June 30,                        June 30
                                                               1999            1998            1999            1998
                                                            ---------       ---------       ---------       ---------
<S>                                                         <C>              <C>             <C>             <C>
Cash flows from operating activities:
  Net income (loss)                                         $ (96,382)        109,971        (158,484)        222,731
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:
        Depreciation & amortization                            68,461          33,777         125,890          56,173
        Allowance for doubtful accounts                         2,288             641           4,538           4,206
        Deferred income taxes                                 (25,317)           --           (25,317)           --
        Changes in items affecting operations:
          Trade receivables and note receivables              142,538        (132,107)        145,885        (324,882)
          Inventories                                         (46,220)         92,356         (63,766)       (145,859)
          Prepaid expenses                                    (37,769)        (52,824)        (32,510)        (93,892)
          Accounts payable                                    (68,015)        (14,035)        (20,864)        245,866
          Accrued compensation expenses                        11,006          49,666          34,419          39,581
          Other current liabilities                           (57,174)          6,682         (30,504)         16,023
          Income taxes payable                                   --            49,407        (105,052)         56,212
                                                            ---------       ---------       ---------       ---------
              Net cash provided by (used in)
                operating activities                         (106,584)        143,534        (125,765)         76,159
                                                            ---------       ---------       ---------       ---------
Cash flows from investing activities:
  Capital expenditures                                        (22,376)       (129,554)        (64,753)       (164,292)
  Short term investments                                       24,066            --           245,522            --
  Acquisition of business assets                                 --              --          (171,828)           --
  Other assets                                                 (2,205)             20            (290)         (4,903)
                                                            ---------       ---------       ---------       ---------
              Net cash provided by (used in)
                investing activities                             (515)       (129,534)          8,651        (169,195)
                                                            ---------       ---------       ---------       ---------
Cash flows from financing activities:
  Repayment of bank borrowings                               (100,000)           --              --              --
  Repayment of shareholder notes receivable                     2,972           1,358           6,387           2,920
                                                            ---------       ---------       ---------       ---------
              Net cash provided by (used in)
                financing activities                          (97,028)          1,358           6,387           2,920
                                                            ---------       ---------       ---------       ---------
Net increase (decrease) in
  cash and cash equivalents                                  (204,127)         15,358        (110,727)        (90,116)

Cash and cash equivalents at beginning of period              487,067         192,011         393,667         297,485
                                                            ---------       ---------       ---------       ---------

Cash and cash equivalents at end of period                  $ 282,940         207,369         282,940         207,369
                                                            =========       =========       =========       =========
<FN>
See the accompanying notes to the financial statements.
</FN>
</TABLE>

                                                                    Page 4 of 11
<PAGE>




                           SIERRA MONITOR CORPORATION

                        Notes to the Financial Statements

                                  June 30, 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,  consisting of normal  recurring  adjustments  necessary to present
fairly the financial position of Sierra Monitor  Corporation as of June 30, 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 June 30, 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.

                                                                    Page 5 of 11
<PAGE>



Inventories

A summary of inventories follows:
                                            June 30,            December 31,
                                             1999                   1998
                                             ----                   ----
            Raw materials                $   394,721             $ 348,032
            Work-in-process                  381,492               411,846
            Finished goods                   232,742               185,311
                                         -----------             ---------
                                         $ 1,008,955             $ 945,189
                                         ===========             =========

Net Income (loss) per share
<TABLE>
      In accordance with SFAS No. 128, Earnings Per Share, 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 Company has reported a net
loss for both the  three  month  period  ended  June 30,  1999 and the six month
period  ended June 30,  1999.  As a result  97,656 and 101,040  shares have been
excluded  from the  calculation  of diluted  loss per share for the three  month
period  ended  June 30,  1999 and the six  month  period  ended  June 30,  1999,
respectively.  The  following  is a  reconciliation  of the  shares  used in the
computation  of basic and diluted EPS for the three and six month periods ending
June 30, 1999 and 1998, respectively:


<CAPTION>
                                                           3 months         6 months        3 months           6 months
                                                             ended            ended           ended              ended
                                                            6/30/99          6/30/99         6/30/98            6/30/98
<S>                                                       <C>              <C>             <C>                <C>
Basic EPS - weighted-average number of
    common shares outstanding                             10,967,588       10,967,588      10,566,263         10,566,263

Dilutive stock options                                           --               --          602,939            449,235
                                                     ----------------- ---------------- ----------------- ----------------

Diluted EPS - dilutive potential common shares            10,967,588       10,967,588      11,169,202         11,015,498
                                                     ================= ================ ================= ================
</TABLE>


                                                                    Page 6 of 11
<PAGE>




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

Results of Operations

      For the three months ended June 30, 1999, Sierra Monitor  Corporation (the
"Company") reported net sales of $1,511,452 compared to $2,064,115 for the three
months ended June 30, 1998.  For the six-month  period ended June 30, 1999,  net
sales were  $3,170,740  compared  with  $3,597,539  in the prior year  six-month
period. During the three month period ended June 30, 1998 a single order for gas
sensor modules to an international  customer  accounted for approximately 22% of
sales. In the same period in 1999 there were no similar  orders,  resulting in a
significant  decrease in net sales.  Additionally,  sales of other gas detection
systems  were 13% lower in the first six  months of 1999,  compared  to the same
period in 1998,  primarily due to lower sales to the Navy.  Sales of Environment
Controllers  used  by  telephone  companies  and  sales  of  the  Company's  new
Communications  Bridge  both  increased  during  the  three  month and six month
periods  in 1999  offsetting  some of the  decline  in  sales  of gas  detection
systems.

      The Company  continues sales and marketing  activities  aimed at improving
sales of gas detection products while capitalizing on the increasing momentum of
sales of the newer products.

      Gross  profit of $921,733 for the  three-month  period ended June 30, 1999
was 61% of sales compared to $1,096,779,  or 53% of sales, in the same period in
the previous year. The gross profit for the six-month period ended June 30, 1999
was $1,947,947, or 61% of sales, compared to $2,061,227, or 57% of sales, in the
same period in the previous  year.  The gross margin for the three and six month
periods in the two periods in 1999 are consistent  with historical  levels.  The
gross margin for the  three-month  period ended June 30, 1998 was  substantially
lower than historical  levels  primarily due to a discount  applied to the large
international order described above.

      Expenses  for  research  and   development,   which  include  new  product
development  and engineering to sustain  existing  products,  were $188,971,  or
12.5% of sales,  for the  three-month  period  ending June 30, 1999  compared to
$165,498,  or 8.0% of sales, in the comparable  period in 1998. In the six-month
periods  ending  June  30,  1999 and June 30,  1998,  research  and  development
expenses  were  $403,279,  or 12.7% of sales,  and  $289,831,  or 8.1% of sales,
respectively.  The higher research and  development  expenses were undertaken to
continue  development of products and product  options  identified as key to the
Company's  future sales growth.  The new products,  completed in the first three
months of 1999, included a master controller known as the Sentry Commander,  and
specialized  gas  sensors  for use in 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  using  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.  Engineering  expenses also include amortization
of assets purchased in two previously reported transactions completed since June
1998. Amortization,  and other depreciation expenses, increased by approximately
$46,000  in the first six  months of 1999  compared  to the first six  months of
1998.

      Selling and marketing  expenses for the three-month  period ended June 30,
1999 were $565,666, or 37.4% of sales, compared to $494,119, or 24% of sales, in
the comparable  period in the prior year. For the six-month  periods ending June
30, 1999 and June 30, 1998, selling and marketing  expenses were $1,139,101,  or
35.9% of sales,  and $946,505,  or 26% of sales,  respectively.  The increase in
selling costs is, in part,  due to the  addition,  since June 1998, of two sales
professionals  to allow  focused  selling  efforts

                                                                    Page 7 of 11
<PAGE>

in the telephone industry. Commissions paid to independent sales representatives
were also higher in both periods in 1999. Commissions, as a percentage of sales,
vary  periodically  based on product mix, level of  discounting  and channels of
distribution.

      General and administrative  expenses were $311,287, or 20.6% of sales, for
the three-month period ended June 30, 1999 compared to $283,134,  or 14% percent
of sales,  in the  three-month  period  ended June 30,  1998.  For the six month
periods  ending June 30,  1999 and June 30,  1998,  general  and  administrative
expenses were  $620,687,  or 19.6% of sales,  and  $556,336,  or 15.5% of sales,
respectively. Increases in salary and benefit expenses contributed to the higher
general and administrative expenses.

      Net loss,  after  interest  and income tax  benefit,  for the three months
ended June 30, 1999 was $96,382,  compared with net income,  after  interest and
provision for income taxes, of $109,971 in the three months ended June 30, 1998.
Net loss, after interest and income tax benefit,  for the six-month period ended
June 30,  1999 was  $158,484  compared  with net income of  $222,731 in the same
period in the prior  year.  The  losses in both  periods  of 1999 are due to the
combination of lower sales,  the effect of which was partially  offset by higher
gross margins,  combined with higher fixed expenses for research and development
and selling activities.  In the first half of 1998 the Company had experienced a
significant  increase in net sales without substantial  offsetting  increases in
fixed  expenses.  Subsequent  additions  of new  employees,  resulting in higher
expenses  in the first half of 1999,  were  directed  toward  generating  future
increases in sales which have not yet been fully realized.

      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, as
the Model 2460.  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,  all of which
had been paid by June 30, 1999.

      Subsequent to the Montech  transaction  the Company began  assembling  the
Model 2460 in a rented manufacturing facility in Ft. Myers, Florida. The Company
is in the process of leasing a three thousand square foot manufacturing facility
and intends to move Model 2460 and other selected assembly  operations into that
facility  upon its  occupation  in August 1999.  At present,  the expense of Ft.
Myers  operations  exceeds the gross profit generated by sales of Model 2460 and
therefore  contributes  to the net loss  reported  for the year to date  period.
Since acquiring the assets, the Company has been taking action to increase total
sales of Model 2460 and to  decrease  costs of critical  components  used in its
manufacture.

Liquidity and Capital Resources

      During the six month  period ended June 30, 1999,  the  Company's  working
capital  decreased by $262,659 from  December 31, 1998.  The decrease in working
capital is primarily  due to the  acquisition  of assets of Montech as described
above,  and is also  due to the net  loss.  At June  30,  1999,  cash  and  cash
equivalents totaled $282,940.

                                                                    Page 8 of 11
<PAGE>

      The Company  currently has no current or long term balance due on its line
of credit  with its  commercial  bank.  The  Company  believes  that its current
capital  resources,  which include  cash,  accounts  receivable  and the line of
credit 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  Company's  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 validation of the year 2000 compliance 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.

      The total cost of the preparation and  implementation  of the verification
program and corrective actions, most of which are now substantially complete, is
estimated to be less than $100,000 and has been funded  through  operating  cash
flow. A significant  proportion of these costs were not incremental costs to the
Company, but rather represented redeployment of existing technical and personnel
resources. The costs of any remaining corrective actions is estimated to be less
than $5,000 which will, likewise, be funded through operating cash flows.

      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 11
<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

           The Company's Annual Meeting of Shareholders was held on May 11 1999.
           At the meeting the following directors were elected:

                                                Number of Common Shares Voted
                                                -----------------------------

           Directors                             For                 Withheld
           ---------                             ---                 --------

           Gordon R. Arnold                   7,524,268                  0

           C. Richard Kramlich                7,524,268                  0

           Jay T. Last                        7,524,268                  0

           Robert C. Marshall                 7,524,268                  0
<TABLE>
           In addition, the shareholders approved the following proposal:
<CAPTION>
                                                                Number of Common Shares Voted
                                                                -----------------------------

           Proposal                                             For         Against       Abstain
           --------                                             ---         -------       -------

<S>                                                          <C>               <C>           <C>
           Ratify the appointment of KPMG LLP as the         7,524,268         0             0
           Company's  independent public accountants
           for the fiscal year ending December 31, 1999
</TABLE>
           There were no broker non-votes for any of the proposals.

Item 5.    Other Information - N/A

Item 6.    Exhibits and Reports on Form 8-K

           a.     Exhibits.

                      27.0 Financial Data Schedule

           b. Reports on Form 8-K.

                      None.

                                                                   Page 10 of 11
<PAGE>




                                    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:      August  11, 1999               By:   /s/ Gordon R. Arnold
                                               ---------------------------------
                                                Gordon R. Arnold

                                                President

                                                Chief Financial Officer



                                                                   Page 11 of 11