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, 2000
                                          --------------

                                       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, 2000 was 10,967,588.

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

                                                                     Page 1 of 9

<PAGE>


                          PART I: FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                           SIERRA MONITOR CORPORATION
<TABLE>

                                 Balance Sheets
<CAPTION>
                                                                      March 31,     December 31,
                                                                        2000            1999
                                                                     -----------    -----------
                                   Assets                            (Unaudited)
                                   ------
<S>                                                                  <C>                <C>
Current assets:
      Cash and cash equivalents                                      $   465,436        606,939
      Trade receivables, less allowance for doubtful                   1,224,099        801,593
          accounts of $140,071 in 2000 and $138,572
          in 1999
      Notes receivable                                                    24,863         27,084
      Inventories                                                      1,240,636      1,166,648
      Prepaid expenses                                                    70,397        103,849
      Deferred income taxes                                              212,311        212,311
                                                                     -----------    -----------
                        Total current assets                           3,237,742      2,918,424

Property and equipment, net                                              193,769        198,657
Deferred income taxes                                                     97,850         97,850
Other assets                                                             402,781        418,752
                                                                     -----------    -----------
                        Total assets                                 $ 3,932,142      3,633,683
                                                                     ===========    ===========

                Liabilities and Shareholders' Equity

Current liabilities:
      Accounts payable                                               $   484,913        411,540
      Accrued compensation expenses                                      326,717        273,733
      Other current liabilities                                           31,990         43,812
      Income taxes payable                                                55,897           --
                                                                     -----------    -----------
                        Total current liabilities                        899,517        729,085

Commitments

Shareholders' equity:
      Common stock; 20,000,000 shares authorized                       3,159,944      3,159,944
         10,967,588 shares issued and outstanding
      Accumulated deficit                                                (90,010)      (214,440)
      Notes receivable from shareholders                                 (37,309)       (40,906)
                                                                     -----------    -----------

                        Total shareholders' equity                     3,032,625      2,904,598
                                                                     -----------    -----------

                        Total liabilities and shareholders' equity   $ 3,932,142      3,633,683
                                                                     ===========    ===========

<FN>

See accompanying notes to financial statements.
</FN>
</TABLE>
                                                                     Page 2 of 9
<PAGE>

                           SIERRA MONITOR CORPORATION

                            Statements of Operations
                                   (Unaudited)

                                                      For the three months ended
                                                      -------------------------
                                                       March 31,     March 31,
                                                         2000          1999
                                                      -----------   -----------

Net sales                                             $ 2,185,451     1,659,288

Cost of goods sold                                        825,019       633,074
                                                      -----------   -----------
                  Gross profit                          1,360,431     1,026,214
                                                      -----------   -----------

Operating expenses
      Research and development                            249,683       214,308
      Selling and marketing                               577,467       573,438
      General and administrative                          354,795       309,400
                                                      -----------   -----------
                                                        1,181,945     1,097,146
                                                      -----------   -----------

                  Income (loss) from operations           178,486       (70,932)
Other income                                                 --              34
Interest income                                             1,841         8,793
                                                      -----------   -----------
               Income (loss) before income tax
                   expense                                180,327       (62,105)
Income tax expense                                         55,897          --
                                                      -----------   -----------
                Net income (loss)                     $   124,430       (62,105)
                                                      ===========   ===========
Net income (loss) per share - basic                   $      0.01         (0.01)
                                                      ===========   ===========
Net income (loss) per share - diluted                 $      0.01         (0.01)
                                                      ===========   ===========

Weighted-average number of shares used in per
  share computations:

         Basic                                         10,967,588    10,967,588
                                                      ===========   ===========
         Diluted                                       11,347,344    10,967,588
                                                      ===========   ===========


See accompanying notes to financial statements.

                                                                     Page 3 of 9
<PAGE>


<TABLE>
                           SIERRA MONITOR CORPORATION

                            Statements of Cash Flows
                                   (Unaudited)
<CAPTION>
                                                             For the three months ended
                                                               ----------------------
                                                                March 31,   March 31,
                                                                  2000         1999
                                                               ---------    ---------
<S>                                                            <C>            <C>
Cash flows from operating activities:
       Net income (loss)                                       $ 124,430      (62,105)
       Adjustments to reconcile net income (loss) to
       net cash used in operating activities:
              Depreciation and amortization                       53,404       57,429
              Allowance for doubtful accounts                      1,500        2,250
              Change in operating assets and liabilities:
                 Trade receivables                              (424,006)       1,265
                 Notes receivable                                  2,221        2,082
                 Inventories                                     (73,988)     (17,547)
                 Prepaid expenses                                 33,452        5,260
                 Accounts payable                                 73,373       47,151
                 Accrued compensation expenses                    52,984       23,414
                 Other current liabilities                       (11,822)      26,670
                 Income taxes payable                             55,897     (105,051)
                                                               ---------    ---------
                  Net cash (used in) operating activities       (112,554)     (19,182)
                                                               ---------    ---------
Cash flows from investing activities:
       Capital expenditures                                      (32,546)     (42,376)
       Short term investments                                       --        221,456
       Acquisition of business assets                               --       (171,828)
       Other assets                                                 --          1,916
                                                               ---------    ---------
                  Net cash provided by (used in) investing
                  activities                                     (32,546)       9,168
                                                               ---------    ---------
Cash flows from financing activities:
       Proceeds from bank borrowings, net                           --        100,000
       Proceeds  from exercise of stock options,
          net of notes receivable                                  3,597        3,415
                                                               ---------    ---------
                   Net cash provided by financing activities       3,597      103,415
                                                               ---------    ---------
Net increase (decrease) in cash and cash equivalents            (141,503)      93,400
Cash and cash equivalents at beginning of period                 606,939      393,667
                                                               ---------    ---------
Cash and cash equivalents at end of period                     $ 465,436      487,067
                                                               =========    =========

<FN>
See accompanying notes to financial statements.`
</FN>
</TABLE>
                                                                     Page 4 of 9

<PAGE>

                           SIERRA MONITOR CORPORATION

                        Notes to the Financial Statements

                                 March 31, 2000

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,
1999  which was  filed  March 30,  2000.  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, 2000 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, 2000.

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,
                                        2000         1999
                                     ----------   ----------
                   Raw Materials     $  431,739      403,338

                   Work-in-process      262,407      520,220

                   Finished goods       546,490      243,090
                                     ----------   ----------

                                     $1,240,636    1,166,648
                                     ==========   ==========


                                                                     Page 5 of 9
<PAGE>

Net Income (loss) 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  following  is a  reconciliation  of the shares  using in the
computation  of basic and diluted  EPS for the periods  ended March 31, 2000 and
1999 respectively:

                                                              2000          1999

Basic EPS - weighted-average number of common
            shares outstanding                          10,967,588    10,967,588

Effect of dilutive common equivalent
            shares - stock options outstanding             379,756             0
                                                        ----------    ----------
Diluted EPS - weighted-average of common
            shares and common
            equivalent shares outstanding               11,347,344    10,967,588
                                                        ==========    ==========

Diluted EPS as of 3/31/99 does not include  273,203  stock  options  because the
inclusion of such stock options would be  antidilutive  due to the loss incurred
by the Company in that quarter.

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 9
<PAGE>


This report contains  forward-looking  statements  within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  Actual  results could differ  materially  from those  projected in the
forward-looking  statements  as a result of the risk  factors  set forth in this
report,  the  Company's  Annual  Report on Form  10-KSB  and other  reports  and
documents that the Company files with the Securities and Exchange Commission.

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

Results of Operations:

      For the three months ended March 31, 2000 Sierra Monitor  Corporation (the
"Company") reported net sales of $2,185,451 compared to $1,659,288 for the three
months  ended March 31, 1999.  The results for the first  quarter of fiscal 2000
represent a 32% increase from the same period in the prior year.

      The primary  reason for the  increase in sales is an increase in shipments
of environment  controllers,  which are used in telephone company  applications.
Major  telephone  companies  are investing in  infrastructure  expansion to meet
rapidly  growing  demand for  Internet  related  broadband  services.  Broadband
expansion  requires that small buildings and underground  vaults must be located
within two miles of each home to be serviced.  For each small  structure  Sierra
Monitor  has an  opportunity  to supply  an  environment  controller.  Bandwidth
expansion is an ongoing activity for telephone companies and the Company intends
to vigorously pursue further participation in this market.

      In addition  to products  for the  telephone  industry,  sales of protocol
conversion devices increased in the quarter ended March 31, 2000 compared to the
same quarter of 1999. Sales of gas detection  systems were marginally lower than
the first quarter of 1999 primarily due to less shipments of large systems.

      Gross  profit  for the  three  month  period  ended  March  31,  2000  was
$1,360,431  compared to $1,026,214  in the same period in the previous  year. In
both periods the gross margin was approximately  62% of net sales.  Gross profit
can vary due to the mix of products  shipped in a given period and the discounts
which  may be  applied  to those  shipments.  In the first  quarter  of 2000 the
product mix varied from the first  quarter of the prior year due to the increase
in shipments of environment controllers.  Although these products generally have
higher  materials  content  than  other  products  sold by the  Company,  volume
purchasing  economies  offset  the impact on gross  margin.  There were no other
abnormal changes in material and labor costs.

       Expenses  for  research  and  development,   which  include  new  product
development and engineering to sustain existing products,  were $249,683, or 11%
of net sales,  for the three month period ended March 31,  2000,  compared  with
$214,308,  or 13% of net sales,  in the  comparable  period in 1999.  The higher
research and develop  expenses  continue to reflect the Company's  investment in
development of software  programs and improvement of hardware designs  necessary
to grow sales of the Company's  Communications  Bridge.  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,
2000 were  $577,467  or 26% of net sales,  compared to  $573,438,  or 35% of net
sales, in the same period in the prior year. Selling and marketing costs include
commissions,   which   vary  by  product   mix,   paid  to   independent   sales


                                                                     Page 7 of 9
<PAGE>

representatives.  Commissions  costs for  environment  controllers are generally
lower than for other  products  because most  environment  controllers  are sold
directly without representative involvement.

      General and  administrative  expenses  for the first  quarter of 2000 were
$354,795  or 16% of net sales  compared to $309,400 or 19% in the same period in
the prior year. Increases in salary and benefit expenses,  related to support of
the higher level of sales, and expenses for the Company's manufacturing plant in
Fort  Myers,  Florida  contributed  to the  higher  general  and  administrative
expenses. The Company's Florida manufacturing plant was not in operation for the
full period of the first quarter of 1999.

      Net income,  after  provision for income tax expense,  for the three month
period  ended March 31,  2000 was  $124,430  or  approximately  6% of net sales,
compared  with a net loss of  $62,105 or  approximately  4% of net sales for the
same period in the prior year.  The  improvement  in income is due to the higher
sales level which was achieved  without  significant  impact on gross margin and
lower selling and administrative costs as a percent of sales.

Liquidity and Capital Resources:

      During the period  ended March 31, 2000,  the  Company's  working  capital
increased by $148,886  compared to December  31,  1999.  The increase in working
capital is primarily  due to the net income  generated in the quarter.  At March
31, 2000, cash and cash equivalents,  totaled  $465,436.  Trade  receivables,  a
component of working  capital,  increased  by $424,006  compared to December 31,
1999.  Trade  receivable  generally  reflect  the sales level of the prior sixty
days,  so a higher  level is  expected  when sales have  increased.  The Company
believes the current level of  receivables  is acceptable  and that the level of
reserves  is  appropriate.  In the  current  fiscal  year,  the  Company has not
utilized  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 Preparation and Results.

      As a result of its planning and  preparation,  the Company  experienced no
adverse impact of the year 2000  roll-over.  The Company does not anticipate any
further expense related to this event.

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 8 of 9
<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.

                                  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 12, 2000                     By:    /s/ Gordon R. Arnold
                                                     --------------------------
                                                     Gordon R. Arnold
                                                     President
                                                     Chief Financial Officer

                                                                     Page 9 of 9