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, 2001

                                       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 8, 2001
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

<TABLE>
                           SIERRA MONITOR CORPORATION

                            Condensed Balance Sheets
                                   (Unaudited)
<CAPTION>
                                                                      March 31,     December 31,
                                                                        2001           2000
                                                                     -----------    -----------
<S>                                                                  <C>              <C>
                                   Assets
Current assets:
      Cash and cash equivalents                                      $   915,312      1,166,296
      Trade receivables, less allowance for doubtful                   1,409,874      1,295,667
          accounts of $81,276 in 2001 and $79,027
          in 2000
      Notes receivable                                                    13,965         16,879
      Inventories                                                      1,590,511      1,460,510
      Prepaid expenses                                                   141,991         84,920
      Deferred income taxes                                              196,443        196,443
                                                                     -----------    -----------
                        Total current assets                           4,268,096      4,220,715

Property and equipment, net                                              227,728        231,000
Deferred income taxes                                                      5,863          5,863
Other assets                                                             355,596        354,734
                                                                     -----------    -----------
                        Total assets                                 $ 4,857,283      4,812,312
                                                                     ===========    ===========

                Liabilities and Shareholders' Equity

Current liabilities:
      Accounts payable                                               $   565,661        475,111
      Accrued compensation expenses                                      329,104        352,569
      Income taxes payable                                               111,225        321,715
      Other current liabilities                                           78,018         75,424
                                                                     -----------    -----------
                        Total current liabilities                      1,084,008      1,224,819

Commitments

Shareholders' equity:
      Common stock; 20,000,000 shares authorized
         10,967,588 shares issued and outstanding                         10,968         10,968
      Additional paid-in capital                                       3,148,976      3,148,976
      Retained earnings                                                  637,401        455,025
      Notes receivable from shareholders                                 (24,070)       (27,476)
                                                                     -----------    -----------
                        Total shareholders' equity                     3,773,275      3,587,493
                                                                     -----------    -----------
                        Total liabilities and shareholders' equity   $ 4,857,283      4,812,312
                                                                     ===========    ===========
<FN>
See accompanying notes to the condensed financial statements.
</FN>
</TABLE>
                                                                     Page 2 of 9
<PAGE>
<TABLE>
                           SIERRA MONITOR CORPORATION

                       Condensed Statements of Operations

                                   (Unaudited)

<CAPTION>
                                                                    For the three months ended
                                                                    --------------------------
                                                                      March 31,    March 31,
                                                                        2001          2000
                                                                    -----------   -----------
<S>                                                                 <C>             <C>
Net sales                                                           $ 2,626,298     2,185,451

Cost of goods sold                                                      946,522       825,019
                                                                    -----------   -----------
                  Gross profit                                        1,679,776     1,360,431
                                                                    -----------   -----------

Operating expenses
      Research and development                                          293,536       249,683
      Selling and marketing                                             679,190       577,467
      General and administrative                                        413,704       354,795
                                                                    -----------   -----------
                                                                      1,386,430     1,181,945
                                                                    -----------   -----------
                  Income from operations                                293,346       178,486

Interest income                                                          10,742         1,841
                                                                    -----------   -----------

                  Income before income tax
                    expense                                             304,088       180,327

Income tax expense                                                      121,712        55,897
                                                                    -----------   -----------

                Net income                                          $   182,376       124,430
                                                                    ===========   ===========

Net income per share - basic                                        $      0.02          0.01
                                                                    ===========   ===========
Net income per share - diluted                                      $      0.02          0.01
                                                                    ===========   ===========

Weighted-average number of shares used in per share computations:
         Basic                                                       10,967,588    10,967,588
                                                                    ===========   ===========
         Diluted                                                     11,546,624    11,347,344
                                                                    ===========   ===========

<FN>

See accompanying notes to the condensed financial statements.
</FN>
</TABLE>
                                                                     Page 3 of 9


<PAGE>


<TABLE>
                           SIERRA MONITOR CORPORATION

                       Condensed Statements of Cash Flows

                                   (Unaudited)
<CAPTION>
                                                                 For the three months ended
                                                                 --------------------------
                                                                  March 31,      March 31,
                                                                    2001           2000
                                                                 -----------    -----------
<S>                                                              <C>                <C>
Cash flows from operating activities:
       Net income                                                $   182,376        124,430
       Adjustments to reconcile net income to net cash used in
       operating activities:
              Depreciation and amortization                           71,542         53,404
              Allowance for doubtful accounts                          2,249          1,500
              Change in operating assets and liabilities:
                 Trade receivables                                  (116,456)      (424,006)
                 Inventories                                        (130,001)       (73,987)
                 Prepaid expenses                                    (57,071)        33,452
                 Accounts payable                                     90,550         73,373
                 Accrued compensation expenses                       (23,465)        52,984
                 Other current liabilities                             2,594        (11,822)
                 Income taxes payable                               (210,490)        55,897
                                                                 -----------    -----------

                  Net cash used in operating activities             (188,172)      (114,775)
                                                                 -----------    -----------

Cash flows from investing activities -
       Capital expenditures                                          (69,132)       (32,546)
                                                                 -----------    -----------

Cash flows from financing activities -
       Repayment of notes receivable                                   6,320          5,818
                                                                 -----------    -----------

Net decrease in cash and cash equivalents                           (250,984)      (141,503)

Cash and cash equivalents at beginning of period                   1,166,296        606,939
                                                                 -----------    -----------

Cash and cash equivalents at end of period                       $   915,312        465,436
                                                                 ===========    ===========


Supplemental cash flow information:
     Cash paid for income taxes                                  $   329,018           --
                                                                 ===========    ===========
<FN>
See accompanying notes to the condensed financial statements.
</FN>
</TABLE>

                                                                     Page 4 of 9

<PAGE>


                           SIERRA MONITOR CORPORATION

                   Notes to the Condensed Financial Statements

                                 March 31, 2001

Basis of Presentation

      The unaudited  condensed  financial  statements  have been prepared by the
Company,  pursuant to the rules and  regulations  of the Securities and Exchange
Commission (SEC). 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, 2000 which was filed March 26, 2001.  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,  2001 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, 2001.

Summary of Business

      Sierra Monitor  Corporation  (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 which
has been marketed as a Communications  Bridge.  During the first quarter of 2001
the name "Communications Bridge" was changed to "FieldServer". FieldServers will
be marketed under a new division of the Company named FieldServer  Technologies.
FieldServers  enable electronic  control systems to communicate with each other,
generally over Ethernet,  even when the systems use non-compatible  data storage
and transfer protocols.

      Gas monitoring products  manufactured by the Company are sold primarily to
oil and gas  drilling  and  refining  companies,  chemical  plants,  waste-water
treatment plants,  semiconductor  industry and other  applications which involve
the handling or generation of hazardous gases.  Environment Controllers are sold
to telecommunications companies and their suppliers.  FieldServers are typically
sold to  integration  companies  that  service  building  and  plant  automation
projects.
                                                                     Page 5 of 9
<PAGE>

Inventories

A summary of inventories follows:
                                       March 31,   December 31,
                                         2001          2000
                                      ----------   ----------

                    Raw Materials     $  600,465      622,372

                    Work-in-process      312,126      562,518

                    Finished goods       677,920      275,620
                                      ----------   ----------

                                      $1,590,511    1,460,510
                                      ==========   ==========

Net Income (loss) per share

      Basic  earnings  per share (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  were  made  for  purposes  of per  share
calculations.  The  following  is a  reconciliation  of the  shares  used in the
computation  of basic and diluted  EPS for the periods  ended March 31, 2001 and
2000, respectively:
<TABLE>
<CAPTION>

                                                                                       2001                     2000
<S>                                                                              <C>                      <C>
      Basic  EPS  -  weighted-average   number  of  common  shares
          outstanding                                                            10,967,588               10,967,588

      Effect of dilutive common  equivalent shares - stock options
          outstanding                                                               579,036                  379,756
                                                                                 ----------               ----------
      Diluted EPS -  weighted-average  of common shares and common
          equivalent shares outstanding                                          11,546,624               11,347,344
                                                                                 ==========               ==========
</TABLE>

Diluted EPS as of March 31, 2001 does not include  345,000 stock options because
the inclusion of such stock options  would be  antidilutive  due to the exercise
price being higher than the stock price used in the EPS computations.

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>


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

Results of Operations

      For the three months ended March 31, 2001 Sierra Monitor  Corporation (the
"Company") reported net sales of $2,626,298 compared to $2,185,451 for the three
months  ended March 31, 2000.  The results for the first  quarter of fiscal 2001
represent a 20% increase from the same period in the prior year.

      Sales  increased  in each of the  Company's  product  lines.  Declines  in
shipments of gas detection  products to  semiconductor  equipment  manufacturers
were offset by increases in shipments of large  projects and increased  sales to
the U.S.  Navy.  Sales of Environment  Controllers  increased as a result of the
start up of a new DSL broadband  expansion project by a major telephone company.
The  Company is a supplier of  Environment  Controllers  for  several  broadband
projects and the sales level of the product is dependent  upon the rate at which
those projects  progress.  Sales of FieldServers  also  increased,  primarily in
building  automation  applications.  The Company has increased  advertising  and
tradeshow   attendance  in  specific   FieldServer  markets  including  building
automation and plant integration industries.

      Gross  profit  for the  three  month  period  ended  March  31,  2001  was
$1,679,776  compared to $1,360,431  in the same period in the previous  year. In
the current period, the gross margin was approximately 64% of net sales compared
to 62% of net sales in the same period in the  previous  year.  Gross margin 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 2001, compared
with the first  quarter of 2000,  the Company  experienced  a  favorable  mix of
product  shipments  and there  were no  substantial  discounts  applied to large
projects. 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 $293,536, or 11%
of net sales,  for the three month period ended March 31,  2001,  compared  with
$249,683,  or 11% of net sales,  in the  comparable  period in 2000.  The higher
research and development expenses reflect the Company's continuing investment in
development of software  programs and improvement of hardware designs  necessary
to grow sales of  FieldServers.  At the end of the first  quarter  of 2001,  our
FieldServer  Technologies  division  completed  the  development  and  began the
introduction  of new  hardware  packages.  The new  packages  allow  FieldServer
Technologies  to offer lower cost  hardware  but  utilize all the same  software
which was written for earlier products. The lower cost hardware packages will be
marketed toward customers and applications  where multiple unit and repeat sales
are  anticipated.  The Company  intends to continue  development of new hardware
packages  and new  software  programs  known as 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,
2001 were  $679,190  or 26% of net sales,  compared  to  $577,467  or 26% of net
sales,  in the same  period in the prior  year.  Marketing  expenses,  primarily
advertising,  brochures  and  tradeshow  expenses  were  increased  in the first
quarter of 2001 to support the  introduction  of FieldServer  Technologies.  The
Company has doubled its advertising and  substantially  increased its trade show
activities for the year 2001 compared to 2000.

      General and  administrative  expenses  for the first  quarter of 2001 were
$413,704  or 16% of net sales  compared to $354,795 or 16% in the same period in
the prior year. The increase in general and administrative expenses is primarily
due to higher salary, wage and benefit costs.

                                                                     Page 7 of 9
<PAGE>

      Net income for the three month period ended March 31, 2001 was $182,376 or
approximately  7% of  net  sales,  compared  with  net  income  of  $124,430  or
approximately  6% of net sales for the same period in the prior  year.  In first
quarter  2001 the  Company's  blended  state  and  federal  income  tax rate was
approximately  40% compared  with a 31% blended rate applied in first quarter of
2000.  If the same 40% tax rate had been  applied in both periods the net income
for first  quarter of years 2001 and 2000 would have been 7% and 5% of net sales
respectively.

      The  improvement  in income is due to the higher  sales  levels and higher
gross margins which were achieved  without  increases in the percentage of fixed
expenses.

Liquidity and Capital Resources

      During the period  ended March 31, 2001,  the  Company's  working  capital
increased by $188,192  compared to December  31,  2000.  The increase in working
capital is primarily  due to the net income  generated in the quarter.  At March
31, 2001, cash and cash equivalents,  totaled $915,312. Net trade receivables, a
component of working  capital,  increased  by $114,207  compared to December 31,
2000.  Trade  receivables  generally  reflect the sales level of the prior sixty
days,  so a higher level is expected when sales have  increased.  Sales in first
quarter of 2001 were 14% higher  than the fourth  quarter of 2000.  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.

Certain Factors That May Affect Future Results

      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 below and elsewhere in this report. 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
yet competitive price.

      The industry in which the Company  competes is highly  competitive and the
Company  expects  such  competition  to  continue  in the  future.  Most  of the
Company's competitors are larger than the Company and have substantially greater
financial,  technical,  marketing and manufacturing resources. While the Company
has invested in new products,  there can be no assurance that it can continue to
introduce  new products on a timely  basis or that certain of its products  will
not be rendered non-competitive or obsolete by its competitors.

      Our  operations  are  concentrated  in  a  single  building  in  Milpitas,
California,  and a small assembly plant in Fort Myers,  Florida.  Our operations
could be interrupted by fire, earthquake, power loss, telecommunications failure
and other events beyond our control. We do not have a detailed disaster recovery
plan. Our facilities in California are currently subject to electrical blackouts
as a consequence of a shortage of available electrical power. In the event these
blackouts  continue or increase in severity,  they could disrupt our operations.
In  addition,  we do not carry  sufficient  business  interruption  insurance

                                                                     Page 8 of 9
<PAGE>

to compensate us for losses that may occur and any losses or damages incurred by
us could have a material adverse effect on our business.


                           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.
                                  None.

                       (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 9, 2001                     By:    /s/ Gordon R. Arnold
                                                    --------------------------
                                                    Gordon R. Arnold
                                                    President
                                                    Chief Financial Officer


                                                                     Page 9 of 9