==============================================================================

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

                                  FORM 10-Q

(MARK ONE)

[  X  ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended JULY 3, 1998

                                      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 No. 0-4466

                          ARTESYN TECHNOLOGIES, INC.
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            (Exact name of registrant as specified in its charter)

                                   FLORIDA
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        (State or other jurisdiction of incorporation or organization)

                                  59-1205269
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                     (I.R.S. Employer Identification No.)

7900 Glades Road, Suite 500, Boca Raton, Florida                   33434
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      (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code       (561) 451-1000
-----------------------------------------------------------------------

                          

                                NOT APPLICABLE
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      Former name, address and fiscal year if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No

The number of shares of Common Stock,  $.01 par value, of the Registrant  issued
and outstanding as of July 31, 1998, was 38,865,419 shares.

==============================================================================


<PAGE>

                          ARTESYN TECHNOLOGIES, INC.

                              INDEX TO FORM 10-Q

                                                                      Page
                                                                     Number

PART I.           FINANCIAL INFORMATION

Item 1.           Condensed Consolidated Financial Statements:

                  Statements of Operations - For the Thirteen
                  and Twenty-Six Weeks Ended July 3, 1998 and
                  July 4, 1997                                          3

                  Statements of Financial Condition - July 3, 1998
                  and January 2, 1998                                   4

                  Statements of Cash Flows - For the
                  Twenty-Six Weeks Ended July 3, 1998 and
                  July 4, 1997                                          5

                  Statement of Shareholders' Equity- For  the
                  Twenty-Six Weeks Ended July 3, 1998                   6

                  Notes to Condensed Consolidated Financial
                  Statements                                          7-11

Item 2.           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                12-14

PART II.          OTHER INFORMATION

Item 4.           Submission of Matters to a Vote of

                  Security Holders                                     15

Item 6.           Exhibits and Reports on Form 8-K                     15

                  Exhibit No. 27

SIGNATURE


<PAGE>


                         PART I - FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

                           ARTESYN TECHNOLOGIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (Amounts in Thousands Except Per Share Data)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                        THIRTEEN WEEKS ENDED  TWENTY-SIX WEEKS ENDED
                                         JULY 3,    JULY 4,     JULY 3,    JULY 4,
                                          1998        1997        1998       1997
                                        ----------  ---------   --------  ----------

<S>                                      <C>        <C>         <C>       <C>     
SALES                                    $121,824   $130,878    $269,002  $245,341
COST OF SALES                              89,402    95,080     198,359    179,987
                                        ----------  ---------   --------  ----------
      GROSS PROFIT                         32,422    35,798      70,643     65,354
                                        ----------  ---------   --------  ----------
OPERATING EXPENSES

  Selling, general and administrative      14,399    12,350      28,751     24,397
  Research and development                  8,285     7,394      17,244     13,887
  Restructuring charge                          -         -       9,600          -
                                        ----------  ---------   --------  ----------
        TOTAL OPERATING EXPENSES           22,684    19,744      55,595     38,284
                                        ----------  ---------   --------  ----------
OPERATING INCOME                            9,738    16,054      15,048     27,070

OTHER INCOME (EXPENSE):
  Interest expense                         (1,047)   (1,038)     (2,134)    (2,125)
  Interest income                             664       430       1,344        871
                                        ----------  ---------   --------  ----------
                                             (383)     (608)       (790)    (1,254)
                                        ----------  ---------   --------  ----------
INCOME BEFORE INCOME TAXES                  9,355    15,446      14,258     25,816
PROVISION FOR INCOME TAXES                  3,180     5,009       4,847      8,303
                                        ----------  ---------   --------  ----------
INCOME FROM CONTINUING OPERATIONS           6,175    10,437       9,411     17,513
DISCONTINUED OPERATIONS
 Loss  from  operations, net of tax        
   benefit of $222                              -         -           -       (333)
 Loss on disposal of RTP, net of tax        
   benefit of $1,152                            -         -           -     (1,729)
                                         ---------   --------  ----------  --------                                    
NET INCOME                                 $6,175   $10,437    $  9,411    $15,451  
                                        ==========  =========   ========  =========

EARNINGS PER SHARE
BASIC-
  Income from Continuing  Operations        $0.16      $0.29       $0.24      $0.49
  Discontinued Operations                    -           -          -         (0.06)
                                        ----------  ---------   --------  ----------
  Net income                                $0.16      $0.29       $0.24      $0.43
                                        ==========  =========   ========  ==========
ASSUMING FULL DILUTION-
  Income from Continuing Operations         $0.15      $0.26       $0.23      $0.45
  Discontinued Operations                    -           -          -         (0.06)
                                        ----------  --------------------  ----------
   Net income                               $0.15      $0.26       $0.23      $0.39
                                        ==========  =========   ========  ==========
 
NUMBER OF SHARES USED IN THE PER SHARE
 CALCULATION
  Basic                                    38,646    36,379      38,554      36,273
  Assuming dilution                        41,004    40,184      41,254      39,546

</TABLE>

The accompanying  notes are an integral part of these consolidated  financial
statements.


<PAGE>



                           ARTESYN TECHNOLOGIES, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                    (Dollars in Thousands Except Share Data)

                                                   JULY 3,      JANUARY 2,
                                                    1998          1998
                                                -----------    -----------
                                                 (UNAUDITED)    (AUDITED)
ASSETS
CURRENT ASSETS
  Cash and equivalents                           $   55,407     $  55,392
  Accounts receivable, net                           74,609        84,479
  Inventories                                        61,720        59,663
  Prepaid expenses and other                          6,246         8,522
  Deferred income taxes, net                          6,505         5,293
                                                 -----------    -----------
   Total current assets                             204,487       213,349
                                                 -----------    -----------
PROPERTY, PLANT & EQUIPMENT, NET                     63,679        61,581
                                                 -----------    -----------
OTHER ASSETS
  Goodwill, net                                      39,931        40,704
  Deferred income taxes, net                          4,683         4,509
  Other assets, net                                   1,823         2,034
                                                 -----------    -----------
   Total other assets                                46,437        47,247
                                                 -----------    -----------
                                                   $314,603      $322,177
                                                 ===========    ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Current maturities of long-term debt  
   and capital leases                             $   7,260     $  15,598
  Accounts payable and accrued liabilities           76,816        81,929
                                                 -----------    -----------
   Total current liabilities                         84,076        97,527
                                                 -----------    -----------
LONG-TERM LIABILITIES
  Long-term debt and capital leases                  45,830        52,949
  Other long-term liabilities                         8,254         9,025
                                                 -----------    -----------
   Total long-term liabilities                       54,084        61,974
                                                 -----------    -----------
   Total liabilities                                138,160       159,501

SHAREHOLDERS' EQUITY
  Preferred stock, par value $.01; 1,000,000  
    shares authorized; none issued                        -             -    
  Common stock, par value $.01; 80,000,000
    shares authorized; 38,777,088 shares issued  
    and outstanding at July 3, 1998
    (38,380,964 at January 2, 1998)                     388           384      
  Additional paid-in capital                         82,842        78,056
  Retained earnings                                  98,180        88,769
  Foreign currency translation adjustment            (4,967)       (4,533)
                                                 -----------    -----------
   Total shareholders' equity                       176,443       162,676
                                                 -----------    -----------
                                                   $314,603      $322,177
                                                 ===========    ===========

The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>

                           ARTESYN TECHNOLOGIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Amounts in Thousands)
                                   (Unaudited)

                                                      TWENTY-SIX WEEKS ENDED 
                                                       JULY 3,       JULY 4,
                                                         1998          1997
                                                      ---------      --------
OPERATING ACTIVITIES:
  Net income                                            $9,411       $15,451
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation and amortization                         8,367         6,141
   Provision for restructuring charge                    9,600             -
   Provision for discontinued operations                     -         1,636
   Other non-cash charges                                  437           425
  Changes in operating assets and liabilities: 
   (Increase) decrease in accounts receivable           12,197       (14,282)
   Increase in inventories and prepaid expenses         (2,364)      (13,340)
   Increase (decrease)in accounts payable and 
     accrued liabilities                               (14,603)       21,748
  Operating activities of discontinued operations            -         1,423
                                                       --------      -------- 
NET CASH PROVIDED BY OPERATING ACTIVITIES               23,045        19,202
                                                       --------      --------
INVESTING ACTIVITIES:
  Purchases of property, plant and equipment            (9,671)      (10,400)
  Increase in other assets                                (420)         (194)
                                                       --------      --------  
NET CASH USED IN INVESTING ACTIVITIES                  (10,091)      (10,594)
                                                       --------      --------
FINANCING ACTIVITIES:
  Proceeds from issuance of long-term debt                   -         2,724
  Principal payments on debt and capital leases        (15,154)       (5,910)
  Proceeds from exercises of stock options               2,505         1,687
  Proceeds from revolving credit loans                       -         7,564
  Payments on revolving credit loans                         -        (7,564)
                                                       --------      --------  
NET CASH USED IN FINANCING ACTIVITIES                  (12,649)       (1,499)
                                                       --------      --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 
 AND EQUIVALENTS                                          (290)         (340)
                                                       --------      --------
INCREASE IN CASH AND EQUIVALENTS                            15         6,769

CASH AND EQUIVALENTS, BEGINNING OF PERIOD               55,392        34,676
                                                       --------      --------
CASH AND EQUIVALENTS, END OF PERIOD                    $55,407       $41,445
                                                       ========      ========

The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
                           ARTESYN TECHNOLOGIES, INC.
             CONDENSED CONSOLIDATED STATEMENTOF SHAREHOLDERS EQUITY
                   For the Twenty-Six Weeks Ended July 3, 1998
                             (Amounts in Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                    FOREIGN
                                                           ADDITIONAL               CURRENCY
                                       COMMON STOCK         PAID-IN      RETAINED  TRANSLATION
                                    SHARES      AMOUNT      CAPITAL      EARNINGS  ADJUSTMENT
                                   ---------   ---------   ----------    --------  -----------

<S>              <C>                <C>           <C>       <C>          <C>         <C>     
BALANCE, JANUARY 2, 1998            38,381        $384      $78,056      $88,769     $(4,533)
 
  Issuance of common stock
    under stock option plans           396           4        2,501
 
  Tax benefit from exercises of
    stock option                                              2,285
 
  Foreign currency translation
    adjustment                                                                          (434)

  Net income                                                               9,411
                                   ---------   ---------   ----------    --------  -----------
BALANCE, JULY 3, 1998               38,777        $388      $82,842      $98,180     $(4,967)
                                   =========   =========   ==========    ========  ===========

</TABLE>






























The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>

                           ARTESYN TECHNOLOGIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  JULY 3, 1998

1.    BASIS OF PRESENTATION

The accompanying unaudited Condensed Consolidated Financial Statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  reporting  and with the  instructions  to Form 10-Q and Article 10 of
Regulation  S-X.  Certain  information  and  footnote  disclosures  required  by
generally accepted accounting  principles for complete financial statements have
been condensed or omitted.

In the opinion of management,  the accompanying financial statements include all
adjustments  (consisting of normal recurring accruals)  considered  necessary to
present fairly the financial position,  results of operations, and cash flows of
Artesyn  Technologies,  Inc. (the "Company").  The results of operations for the
thirteen and twenty-six weeks ended July 3, 1998 are not necessarily  indicative
of the  results  that  may  be  expected  for  fiscal  year  1998.  For  further
information, these Condensed Consolidated Financial Statements should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's 1997 Annual Report to Shareholders and Form 10-Q for the thirteen week
period ended April 3, 1998.

Certain prior year amounts have been reclassified to conform with current year's
presentation.

2.    INVENTORIES

The components of inventory are as follows ($000s):

                                                July 3,     January 2,
                                                 1998         1997
                                               --------     --------

      Raw materials                             $34,077      $31,181
      Work in process                            11,166       12,582
      Finished goods                             16,477       15,900
                                               --------     --------
                                                $61,720      $59,663
                                               ========     ========

3.    PROPERTY, PLANT & EQUIPMENT, NET

Related accumulated depreciation was $62,137,000 and $50,858,000 at July 3, 1998
and January 2, 1998, respectively.


4.    ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The components of accounts payable and accrued liabilities are ($000s):

                                                 July 3,     January 2,
                                                  1998         1998
                                                 -------      -------

      Accounts payable                           $30,983      $36,790
      Accrued liabilities:
       Compensation and benefits                  13,454       14,875
       Income taxes payable                       13,204       14,071
       Restructuring reserve                       4,463            -
       Warranty reserve                            3,262        3,457
       Other                                      11,450       12,736
                                                 -------      -------
                                                 $76,816      $81,929
                                                 =======      =======

5.    INCOME TAXES

The provision for income taxes reflects  federal,  state, and foreign taxes. The
effective  income tax rate on pretax earnings  differs from that computed at the
United States federal statutory rate for the following reasons:

                                                Twenty-Six Weeks Ended
                                                 July 3,       July 4,
                                                  1998           1997
                                                 -------       --------
      Provision computed at United States    
       federal statutory rate                     35.0%         35.0%
      Effect of state income taxes                 2.7           5.1
      Amortization of goodwill                     0.3           0.2
      Foreign tax effects                         (1.5)         (3.2)
      Change in the valuation allowance           (3.0)         (5.0)
      Other                                        0.5           0.1    
                                                 -------       -------
      Effective tax rate                          34.0%         32.2%
                                                 =======       =======

6.    RESTRUCTURING CHARGE

In connection  with the Company's  restructuring  plan following the merger with
Zytec Corporation,  the Company recorded a pre-tax  restructuring charge of $9.6
million during the first quarter of 1998. This charge relates to the elimination
of duplicate  facilities in an effort to reduce costs  pursuant to the Company's
integration  plan.  Specific  restructuring  actions  include the elimination of
three  manufacturing  facilities  through  the  consolidation  of  manufacturing
operations,  with  corresponding  personnel  reductions,  the realignment of the
Company's   workforce  to  eliminate   duplicate   functions,   particularly  in
administrative   areas,  the   rationalization   of  product  lines,  and  other
cost-savings actions.

The  components  of the  restructuring  charge  recorded in the first quarter of
1998,  payments and other activities  during the second quarter of 1998, and the
remaining reserve balances at July 3, 1998 were as follows ($000s):
<TABLE>
<CAPTION>
                                          Employee
                                         Termination         Product Line        Asset          Facility
                                          Benefits         Rationalization    Write-offs        Closures       Total
                                        --------------     ---------------    ------------     ----------    -----------
 
<S>                                           <C>                 <C>             <C>            <C>            <C>   
Restructuring provision                       $3,956              $2,411          $1,231         $2,002         $9,600
Cash payments                                 (1,449)                  -               -            (46)        (1,495)
Non-cash activities                                -              (2,411)         (1,231)             -         (3,642)
                                         -------------     ---------------    ------------     ----------    -----------
Restructuring reserve at July 3, 1998         $2,507              $    -          $    -         $1,956         $4,463
                                         =============     ===============    ============     ==========    ===========

</TABLE>
 
Employee  termination  benefits  primarily  represent  severance  pay and  other
benefits   associated  with  the  elimination  of  approximately  400  positions
worldwide,  with  more  than 70% of the  eliminated  positions  coming  from the
rationalization  of certain duplicate  manufacturing  locations in Europe. As of
July 3, 1998, 262 positions had been eliminated worldwide. The provision for the
facility  closures  includes  lease  termination  payments,   service  contracts
obligations, and other exit costs associated with facility closures. The product
line  rationalization  provision  of the  restructuring  charge  relates  to the
discontinuation  of non-core  product lines and write-offs of certain  inventory
items not  transferable to other  locations.  In addition,  certain fixed assets
(including duplicate management information systems and unusable equipment) were
written down to their net realizable value.

Total expected cash expenditures  relating to the initial  restructuring  charge
are estimated to be  approximately  $6.0 million,  which,  with the exception of
certain lease-related cash requirements,  is expected to be paid within the next
twelve months.

As of July 3, 1998,  approximately  $4.5 million of the restructuring  charge is
included in accrued  liabilities and the remainder is recorded as a reduction in
the carrying amount of related assets.

7.    COMPREHENSIVE INCOME

The Company adopted Statement of Financial  Accounting  Standards No. 130 ("SFAS
130"),  "Reporting  Comprehensive  Income",  effective January 3, 1998. SFAS 130
establishes  standards for reporting and display of comprehensive income and its
components   in  financial   statements.   The   components   of  the  Company's
comprehensive income are as follows ($000s):
<TABLE>
<CAPTION>

                                                 Thirteen Weeks Ended                   Twenty-Six Weeks Ended
                                                July 3,            July 4,             July 3,              July 4,
                                                 1998              1997                 1998                 1997
                                            ---------------    --------------     ---------------      ---------------

<S>                                                <C>               <C>                 <C>                 <C>    
   Net income                                      $6,175            $10,437             $9,411              $15,451

    Foreign currency translation adjustment         1,414             (1,514)              (657)              (3,811)
    Tax (provision) benefit                          (481)               515                223                1,243
                                            ---------------    --------------     ---------------      ---------------
                                                      933               (999)              (434)              (2,568)
                                            ---------------    --------------     ---------------      ---------------  
   Comprehensive income                            $7,108             $9,438             $8,977              $12,883
                                            ===============    ==============     ===============      ===============

</TABLE>

8.    EARNINGS PER SHARE

The following data show the amounts used in computing earnings per share and the
effects  on income  and the  weighted-average  number  of  shares  of  potential
dilutive common stock.  The  reconciliation  of the numerator and denominator of
the EPS calculation is presented below (000s except per share data):
<TABLE>
<CAPTION>

                                        Thirteen Weeks Ended            Twenty-Six Weeks Ended
                                        July 3,         July 4,          July 3,        July 4,
                                         1998            1997             1998           1997
                                      -----------      ----------      -----------    -----------
BASIC EPS
<S>                                     <C>              <C>             <C>            <C>      
 Income from continuing operations      $ 6,175          $10,437         $ 9,411        $17,513                 
                                      -----------      ----------      -----------    -----------

 Weighted average shares                 38,646           36,379          38,554         36,273
                                      -----------      ----------      -----------    -----------

 Per share - Basic                        $0.16            $0.29           $0.24          $0.49
                                      ===========      ==========      ===========    ===========

ASSUMING DILUTION
  Income from continuing operations      $ 6,175          $10,437         $ 9,411        $17,513
  Add: after-tax interest on         
   convertible note                            -              138               -            276
                                      -----------      ----------      -----------    -----------
                                         $ 6,175         $ 10,575       $   9,411         17,789
                                      -----------      ----------      -----------    -----------

  Weighted average shares                 38,646           36,379          38,554         36,273
  Effect of dilutive items
    Stock options                          2,358            2,638           2,700          2,106
    Convertible note                           -            1,167               -          1,167
                                      -----------      ----------      -----------    -----------
                                          41,004           40,184          41,254         39,546
                                      -----------      ----------      -----------    -----------
  Per share- Diluted                       $0.15            $0.26           $0.23          $0.45
                                      ===========      ==========      ===========    ===========
  
Antidilutive weighted options                736              238             351            570
</TABLE>
  

The above antidilutive  weighted options to purchase shares of common stock were
not included in computing  diluted EPS because their  effects were  antidilutive
for the respective periods.

9.    DERIVATIVE FINANCIAL INSTRUMENTS

The Company  enters into  foreign  currency  forward  contracts  to minimize its
exposure to potentially  adverse changes in foreign  currency  exchange rates on
anticipated but not firmly committed  purchases or sales  denominated in foreign
currencies  made  by  its  international  subsidiaries.   The  foreign  exchange
contracts on receivables  require the Company to exchange European ECU for Irish
Punts.  The  foreign  exchange  contracts  on  payables  require  the Company to
exchange  Japanese Yen to receive US dollars.  At July 3, 1998, the Company held
$1.1 million of forward currency exchange  contracts on payables maturing in one
to three  months.  At January 2, 1998,  the Company held $6.6 million of forward
currency exchange contracts on receivables maturing in one to three months while
no contracts on payables were  outstanding.  Gains and losses on these contracts
are included in the  consolidated  statement of operations as they arise.  Costs
associated  with entering into these  contracts are amortized over the contracts
lives which typically  mature within one year. The amount of any gain or loss on
these contracts during the period was not material. The Company does not hold or
issue financial instruments for trading purposes.

10.   RECENT ACCOUNTING PRONOUNCEMENT

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and Hedging  Activities"  ("SFAS  133").  SFAS 133  establishes  accounting  and
reporting standards for derivative  instruments and for hedging activities.  FAS
133  requires  that an entity  recognize  all  derivatives  as either  assets or
liabilities in the statement of financial position and measure those instruments
at fair  value.  The  accounting  for  changes in the fair value  depends on the
intended use of the derivative and the resulting designation.  This statement is
effective for all fiscal quarters of fiscal years beginning after June 15, 1999.
The  Company  believes  the  adoption  of SFAS No.  133 will not have a material
effect on the Company's financial condition or results of operations.

11.   SUBSEQUENT EVENT

On July 22, 1998, the Company's Board of Directors authorized a share repurchase
program to purchase up to 4.0 million  shares of the  Company's  common stock in
the open market or in  privately-negotiated  transactions,  depending  on market
conditions and other factors.


<PAGE>


                         PART I - FINANCIAL INFORMATION
                 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Sales for the quarter  were $121.8  million,  down 7% from the $130.9  million a
year ago. For the first six months of 1998, sales totaled $269.0 million, up 10%
from  $245.3  million in 1997.  Sales were  adversely  impacted by lower end use
demand   in   the   Company's    primary    market    segments   -   networking,
telecommunications, computing and wireless infrastructure. This lower demand has
been exacerbated by inventory reduction initiatives at certain customers.

The reduced sales volume  contributed  to lower gross margins in the quarter of
26.6%  compared  to 27.3% in the  second  quarter  of 1997.  Also,  the  current
year-to-date  margin of 26.3% was down  compared to the 26.6%  reported  for the
six-month  period a year  ago as the  Company  reduced  its own  inventories  in
response to lower customer demand.

Selling,  general  and  administrative  expenses  were $14.4  million  and $28.8
million for the thirteen and twenty-six weeks ended July 3, 1998,  respectively,
compared  to $12.4  million  and $24.4  million  for the  comparable  prior year
periods.  The increase in 1998 was partially due to additional  spending for the
integration  activities  following  the merger  with Zytec  Corporation  and the
inclusion of the Elba Group acquired in July of 1997. The integration costs were
incurred  to  support  marketing  activities,  to change the  Company's  name to
Artesyn  Technologies,   to  begin  implementation  of  a  new  enterprise-wide
information  system,  and to  familiarize  the Company's  employees,  customers,
suppliers and investors with the resources of the new Artesyn Technologies. 

The Company has been taking  aggressive steps to curb operating  expenses and to
eliminate excess  manufacturing  resources wherever prudent.  Looking ahead, the
Company has a cautious demand outlook through the next two quarters as incoming
orders do not yet support an appreciable revenue increase.

The  Company   continued   its   commitment  to  new  products  for  its  global
communication  customers  as it  invested  $8.3  million,  or 6.8% of sales,  in
research and development  activities during the second quarter of 1998, compared
to $7.4  million,  or 5.6%,  in the  comparable  year ago  quarter.  The Company
believes  that the timely  introduction  of new  technology  and  products is an
important component of its competitive  strategy and anticipates future research
and development spending will not significantly differ from the historical trend
as a percentage of sales of approximately 6-8%.

The Company recorded a pre-tax  restructuring  charge of $9.6 million during the
first  quarter of 1998.  This charge  relates to the  elimination  of  duplicate
manufacturing  facilities in an effort to reduce costs pursuant to the Company's
integration  plan.  Specific  restructuring  actions  include the elimination of
three  manufacturing  facilities  through  the  consolidation  of  manufacturing
operations,  with  corresponding  personnel  reductions,  the realignment of the
Company's   workforce  to  eliminate   duplicate   functions   particularly   in
administrative   areas,  the   rationalization   of  product  lines,  and  other
cost-savings   actions.   Total  expected  cash  expenditure   relating  to  the
restructuring charge is estimated to be approximately $6.0 million,  which, with
the exception of certain lease-related cash requirements, is expected to be paid
within the next  twelve  months.  To date,  the  Company  has paid $1.5  million
primarily for employee termination benefits.

Income from  continuing  operations for the second quarter of 1998 decreased 41%
to $6.2 million, or $0.15 per share, from the $10.4 million, or $0.26 per share,
reported for the comparable year-ago quarter. Excluding the $9.6 million pre-tax
restructuring  charge taken in the first quarter of 1998, income from continuing
operations  for the twenty-six  weeks ended July 3, 1998 was $15.7  million,  or
$0.38 per share, down from $17.5 million, or $0.45 per share, for the comparable
period in 1997.

LIQUIDITY AND CAPITAL RESOURCES

At July 3, 1998,  the  Company's  cash balance  remained at $55.4  million as on
January 2, 1998 as significant  uses of cash for principal  debt  repayments and
capital  expenditures  were funded with cash from  operations  and proceeds from
exercises of stock options.

Accounts receivable  decreased $9.9 million, or 12%, from January 2, 1998 due to
lower sales volume and increased collection activities.

Accounts  payable  decreased  $5.8 million,  or 16%, from January 2, 1998 due to
decreases in capital expenditures and material purchases on lower sales volume.

Effective  June 30, 1998,  the Company  repaid the  outstanding  balance of $3.2
million on its 6.9% mortgage note maturing July 1, 2001.

Cash provided by operations  increased to $23.0 million for the twenty-six weeks
ended July 3, 1998 from $19.2  million  for the  twenty-six  weeks ended July 4,
1997.  The increase was primarily due to income from  operations,  excluding the
$9.6 million pre-tax  restructuring charge, and a smaller increase in inventory,
partially offset by a decrease in accounts payable and accrued liabilities.

Net cash used in financing  activities of $12.6 million for the twenty-six weeks
ended July 3, 1998 reflects  mainly  long-term debt and capital lease  principal
repayments  including $2.2 million on the Company's  seven-year  term loan, $3.2
million  on its 6.9%  mortgage  note,  and  approximately  $7.6  million  on the
Company's  Austrian  subsidiary's  revolving  loans and notes payable  partially
offset by proceeds from option exercises.

On July 22, 1998, the Company's Board of Directors authorized a share repurchase
program to purchase up to 4.0 million  shares of the  Company's  common stock in
the open market or in  privately-negotiated  transactions,  depending  on market
conditions and other factors.

The Company  has a $20 million  revolving  line of credit that  extends  through
April 1, 2000. As of July 3, 1998, the Company had made no borrowings  under the
line of credit and was in compliance  with the agreement's  covenants.  Based on
current plans and business  conditions,  the Company  believes that its cash and
equivalents,  its available  credit line,  cash generated from  operations,  and
other  financing  activities  are  expected  to  be  adequate  to  meet  capital
expenditures,  working capital requirements, debt and capital lease obligations,
and operating lease commitments through the remainder of fiscal 1998.

FORWARD LOOKING STATEMENTS

Certain  statements in this Form 10-Q  constitute  "forward-looking  statements"
within the meaning of the Private  Securities  Litigation Reform Act of 1995 and
are based on the Company's  current  expectations  with respect to future sales,
operating  efficiencies,  growth and  working  capital  needs.  Such  statements
involve  risks  and  uncertainties  which  may cause  actual  results  to differ
materially  from those set forth in these  forward-looking  statements.  Factors
that might affect such forward-looking statements include, among others, general
economic   conditions  and  growth  in  the  power  supply  and   communications
industries,  changes in customer mix, competitive factors and pricing pressures,
changes in product mix, the timely  development  and acceptance of new products,
ability  to  attract  and  retain  customers  including  new OEM  communications
customers,  ability to  attract  and retain  personnel,  inventory  risks due to
shifts in market  demand,  changes  in  absorption  of  manufacturing  overhead,
domestic  and foreign  regulatory  approvals  and other risks  described  in the
Company's various reports filed with the Securities and Exchange Commission.


<PAGE>

                           PART II. OTHER INFORMATION

ITEM  4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

(a) The Company held its Annual Meeting of Shareholders on May 6, 1998.

(c) The following matters were voted upon at the Annual Meeting of Shareholders:

   1. The election of the nominees  for  Directors  who will serve for a term to
      expire at the Annual Meeting of  Shareholders to be held in 1999 was voted
      on by the  shareholders.  The nominees,  all of whom were  elected,  were:
      Edward  S.  Croft,  III,  Fred C. Lee,  Lawrence  J.  Matthews,  Joseph M.
      O'Donnell,  Stephen A.  Ollendorff,  Phillip A. O'Reilly,  Bert Sager,  A.
      Eugene Sapp, Jr., Ronald D. Schmidt,  Lewis Solomon and John M. Steel. The
      Inspectors of Election certified the following vote tabulations:

                                    FOR             WITHHELD
                                ---------           ---------

         Edward S. Croft, III   34,611,538           497,950
         Fred C. Lee            34,878,826           230,662
         Lawrence J. Matthews   34,871,767           237,721
         Joseph M. O'Donnell    34,878,005           231,483
         Stephen A. Ollendorff  34,609,153           500,335
         Phillip A. O'Reilly    34,932,982           176,596
         Bert Sager             34,932,517           176,971
         A.  Eugene Sapp, Jr.   34,941,927           167,561
         Ronald D. Schmidt      34,861,143           248,345
         Lewis Solomon          34,940,742           168,746
         John M. Steel          34,865,766           243,722

   2. A proposal to amend the Company's  Articles of Incorporation to change the
      Company's  name to Artesyn  Technologies,  Inc. The Inspectors of Election
      certified the following vote tabulations:

                        FOR              AGAINST            ABSTAIN
                      ----------------------------------------------
                     34,915,468          119,561            74,459


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

(A)   EXHIBITS

Exhibit No. 27 -- Financial Data Schedule.

(B)   REPORTS ON FORM 8-K

The Company did not file any reports on Form 8-K during the thirteen-week period
ended July 3, 1998.


<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.

                                                ARTESYN TECHNOLOGIES, INC.
                                                --------------------------
                                                       (Registrant)


DATE:    August 11, 1998                        BY:   Richard J. Thompson
                                                      -------------------
                                                      Richard J. Thompson
                                                      Vice President Finance
                                                      Chief Financial Officer