FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



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

                 For the quarterly period ended September 28, 1996

                                                 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. 0-8544

                            SPEIZMAN INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)

                    Delaware                              56-0901212
     (State or other jurisdiction of                   (I.R.S. Employer
      incorporation or organization)                   Identification No.)
               508 West Fifth St.                           28202
              --------------------                       ----------
         Charlotte, North Carolina                       (Zip Code)
  (Address of principal executive offices)

                                 (704) 372-3751
              (Registrant's telephone number, including area code)

                                 Not Applicable
             (Former name, former address and former 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,  and (2) has been subject to such filing  requirements
for the past 90 days.

           YES X                             NO

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock as of the latest practicable date.

                                                            Outstanding at
Class of Common Stock                                      November 8, 1996
---------------------                                      ----------------

Par value $.10 per share                                       3,235,266

                                                                 Page 1 of 13

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                                      INDEX



                                                                    Page No.

PART I.  FINANCIAL INFORMATION:

         Item 1.  Financial Statements:

           Consolidated Condensed Balance Sheets...................  3 - 4

           Consolidated Condensed Statements of Operations.........      5

           Consolidated Condensed Statements of Cash Flows.........      6

           Notes to Consolidated Condensed Financial Statements....      7

           Item 2. Management's Discussion and Analysis of
           Financial Condition and Results of Operations............ 8 - 10


PART II. OTHER INFORMATION:

         Item 6.  Exhibits and reports on Form 8-K

          (a)  Reports on Form 8-K......................................  11

          (b)  Exhibit 11.  Computation of Net Income (Loss) per Share..  12




                                                                         Page 2
<PAGE>


                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>



                                                                          September 28,                  June 29,
                                                                               1996                       1996
                                                                       ------------------             ------------
                                                                           (Unaudited)

                ASSETS
<S>                                                                        <C>                        <C>
CURRENT:
   Cash and cash equivalents                                               $5,216,007                 $ 7,981,723
   Accounts receivable, less allowances of
       $338,234 and $259,956                                               14,358,695                  12,160,449
   Inventories                                                             12,097,205                  11,639,552
   Prepaid expenses and other current assets                                2,786,337                   2,340,111
                                                                          -----------                 -----------
        TOTAL CURRENT ASSETS                                               34,458,244                  34,121,835
                                                                           ----------                  ----------
PROPERTY AND EQUIPMENT:
   Leasehold improvements                                                     553,036                     550,684
   Machinery and equipment                                                  1,264,004                   1,208,508
   Furniture, fixtures and transportation equipment                         1,136,417                   1,218,570
                                                                          -----------                 -----------
        Total                                                               2,953,457                   2,977,762
   Less accumulated depreciation and amortization                          (1,525,377)                 (1,525,058)
                                                                          -----------                  ----------

        NET PROPERTY AND EQUIPMENT                                          1,428,080                   1,452,704
                                                                          -----------                  ----------

OTHER                                                                         585,620                     574,685
                                                                         ------------                 -----------

                                                                          $36,471,944                 $36,149,224
                                                                           ==========                  ==========

                 See  accompanying  notes  to  consolidated  condensed financial statements.
</TABLE>

                                                                      Page 3
<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS


<TABLE>
<CAPTION>


                                                                         September 28,                  June 29,
                                                                             1996                         1996
                                                                          (Unaudited)
<S>                                                                      <C>                          <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable                                                       $15,800,331                 $14,864,567
   Customers' deposits                                                      1,271,282                   2,723,466
   Accrued expenses                                                           497,198                     209,881
   Current maturities of long-term debt                                         1,181                      11,051
                                                                          -----------                  ----------

      TOTAL CURRENT LIABILITIES                                            17,569,992                  17,808,965

LONG-TERM DEBT                                                                129,557                     137,334
                                                                           ----------                  ----------
      TOTAL LIABILITIES                                                    17,699,549                  17,946,299
                                                                           ----------                  ----------


STOCKHOLDERS' EQUITY:
   Common stock - par value $.10; authorized  6,000,000
      shares; issued 3,262,866 and 3,236,199 shares                           326,287                     323,620
   Additional paid-in capital                                              12,512,299                  12,459,965
   Retained earnings                                                        6,032,589                   5,524,360
   Foreign currency translation adjustment                                      1,017                      (5,223)
                                                                           ----------                  ----------
        Total                                                              18,872,192                  18,302,722
   Treasury stock, at cost, 27,600 common shares                              (99,797)                    (99,797)
                                                                           ----------                  ----------
      TOTAL STOCKHOLDERS' EQUITY                                           18,772,395                  18,202,925
                                                                           ----------                  ----------

                                                                          $36,471,944                 $36,149,224
                                                                           ==========                  ==========

</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                                                      Page 4


<PAGE>



                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                                          (Unaudited)
                                                                                   For the Three Months Ended
                                                                   -----------------------------------------------------------
                                                                           September 28, 1996           September 30, 1995
                                                                               (13 Weeks)                   (13 Weeks)
                                                                         -------------------------     ------------------

<S>                                                                           <C>                          <C>
REVENUES                                                                      $16,966,745                  $  8,338,850
                                                                               ----------                  ------------

COSTS AND EXPENSES:
     Cost of sales                                                             14,107,777                     7,595,671
     Selling expenses                                                           1,363,618                       922,263
     General and administrative expenses                                          680,875                       369,762
                                                                               ----------                  ------------

        Total costs and expenses                                               16,152,270                     8,887,696
                                                                               ----------                  ------------

                                                                                  814,475                      (548,846)
NET INTEREST EXPENSE (INCOME)                                                     (46,754)                       18,192
                                                                               ----------                  ------------
     Income (loss) before taxes on income                                         861,229                      (567,038)

TAXES (BENEFIT) ON INCOME                                                         353,000                      (188,000)
                                                                              -----------                  ------------

NET INCOME (LOSS)                                                             $   508,229                   $  (379,038)
                                                                              =+=========                  ============

NET INCOME (LOSS) PER SHARE                                                        $ 0.15                        $(0.12)
                                                                                   ======                        ======

Weighted average number of common and
     equivalent shares                                                          3,305,761                     3,258,860
                                                                                =========                     =========


</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                                                          Page 5
<PAGE>



                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                                               (Unaudited)
                                                                                         For the Three Months Ended
                                                                                        9-28-96             9-30-95
                                                                                      (13 Weeks)           (13 Weeks)
                                                                                  ------------------    ---------------
<S>                                                                               <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                                             $      508,229          $  (379,038)
Adjustments to reconcile net income (loss) to cash used
    by operating activities:
      Depreciation and amortization                                                       87,877               38,982
      Provision for inventory obsolescence                                                50,000               50,000
      Foreign currency translation adjustment                                              6,240               (2,116)
      (Increase) decrease in:
        Accounts receivable                                                           (2,198,246)           5,809,361
        Inventories                                                                     (507,653)             109,037
        Prepaid expenses and other current assets                                       (446,226)             295,226
        Other assets                                                                     (10,935)            (212,300)
      Increase (decrease) in:
        Accounts payable                                                                 935,764           (8,546,170)
        Customers' deposits                                                           (1,452,184)            (173,496)
        Accrued expenses                                                                 287,317             (350,329)
                                                                                ----------------       --------------
    Net cash used in operating activities                                             (2,739,817)          (3,360,843)
                                                                                ----------------       --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures - other equipment                                               (22,604)             (20,239)
    Capital expenditures - equipment leased to customers                                 (51,786)                   -
    Disposition of property and equipment                                                 11,137                2,000
                                                                                ----------------       --------------
      Net cash used in investing activities                                              (63,253)             (18,239)
                                                                                ----------------       --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net proceeds from note payable - bank                                                      -            1,350,000
    Principal payments on long-term debt                                                 (17,647)                (476)
    Issuance of common stock for stock options                                            55,001                    -
                                                                                ----------------       --------------
    Net cash provided by financing activities                                             37,354            1,349,524
                                                                                ----------------       --------------

NET DECREASE IN CASH                                                                  (2,765,716)          (2,029,558)
CASH AND CASH EQUIVALENTS at beginning of period                                       7,981,723            2,436,859
                                                                                ----------------       --------------
CASH AND CASH EQUIVALENTS at end of period                                        $    5,216,007          $   407,301
                                                                                ================       ==============

Supplemental Disclosures:
    Cash paid during period for:
      Interest                                                                    $        5,857          $    44,957
      Income taxes                                                                         1,102              104,026

</TABLE>


     See accompanying notes to consolidated condensed financial statements.

                                                                      Page 6


<PAGE>




                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


Note 1.   Management Statement re Adjustments

           In the opinion of management, the accompanying unaudited consolidated
           financial statements contain all adjustments necessary to present the
           Registrant's  financial  position,  the  results  of  operations  and
           changes in cash flow for the periods indicated.

           The accounting  policies  followed by the Registrant are set forth on
           page F-6 of the Registrant's Form 10-K for the fiscal year ended June
           29, 1996, which is incorporated by reference.

Note 2.   Inventories

           Inventories consisted of the following:

                                           September 28,              June 29,
                                               1996                     1996
                                            (unaudited)
                                          ---------------          ------------
           Machines                        $  8,887,299            $  8,211,242
           Parts and supplies                 3,209,906               3,428,310
                                            -----------             -----------
                     Total                 $ 12,097,205            $ 11,639,552
                                            ===========             ============

Note 3.   Taxes on Income

           Taxes on income are  allocated to interim  periods on the basis of an
estimated annual effective tax rate.

Note 4.   Net Income (Loss) Per Share

           Net income (loss) per share is computed by dividing net income by the
           average  number of common and common  equivalent  shares  outstanding
           during the period.  Common  equivalent  shares  include  those common
           shares which are issuable  upon the exercise of stock  options,  when
           dilutive,  net of shares  assumed to have been  repurchased  with the
           proceeds.



                                                                      Page 7

<PAGE>



                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


GENERAL

The Company's revenues are generated  primarily from its distribution of textile
equipment,  principally knitting machines and dyeing and finishing equipment, to
manufacturers  of textile  products  and, to a lesser  extent,  from the sale of
parts used in such equipment and the sale of used textile equipment.

RESULTS OF OPERATIONS

Revenues  increased  by about $8.6  million in the first  quarter of the current
fiscal year to total $17.0  million.  This compares to the first quarter of last
year when revenues totaled $8.3 million.  This improvement in revenues  resulted
from an $8.3 million increase in sales of hosiery  manufacturing  equipment,  an
$0.8 million increase in sales of knitted fabric manufacturing  equipment and an
increase  of $0.3  million in sales of dyeing  and  finishing  equipment.  These
increases were partially  offset by $0.8 million in declines in sales of sweater
manufacturing machines and miscellaneous other activities.

Cost of sales as a percentage  of net revenues was 83.1% as compared to 91.1% in
the first quarter of the prior fiscal year. This favorable  movement reflects an
improved sales environment,  with better margins,  as well as a changing product
mix. In addition,  service expenses, which are a part of cost of sales, remained
relatively  constant at about $0.5 million between the comparable  periods.  The
stability of service expenses between the comparable periods accounted for about
2.9 percentage points of the improved cost of sales percentage.

Selling  expenses in the first  quarter of fiscal 1997 were  $1,364,000 or about
8.0% of  revenues.  This  compares  to $922,000 or 11.1% of revenues in the same
quarter of last year. Substantial increases in sales salaries, sales commissions
and in letter of credit  expenses,  reflecting  the  increased  sales  activity,
accounted for most of the increase.

General and  administrative  expenses  in the first  quarter of fiscal 1997 were
$681,000  or 4.0% of revenues as compared to $370,000 or 4.4% of revenues in the
first quarter of fiscal 1996.  Major increases  occurred in salaries and bonuses
and in bad debt provisions.

Interest expense is shown net of interest income. In the first quarter of fiscal
1997,  interest income exceeded expense by about $47,000. In the same quarter of
fiscal 1996, interest expense exceeded interest income by $18,000.

In the first quarter of fiscal 1997, the income tax provision  represents  41.0%
of pre-tax income. In the same quarter of last year, the tax benefit represented
35.8% of the pre-tax loss.  The upward shift in the current  quarter  reflects a
loss in the English  subsidiary's  operations  for which a tax loss carryback is
not recognized.

Net income for the current first quarter totaled  $508,000 as compared to a loss
of $379,000 in the same  quarter of last year.  Earnings per share were $0.15 as
compared to a loss per share of $0.12 in the same quarter of last year.

                                                                      Page 8
<PAGE>
OUTLOOK

During the Company's  current first quarter,  the sock industries  served by the
Company continued to show improvements. Demand for single cylinder athletic sock
machines with patterning  capabilities continued to show moderate demand. Demand
for rib  socks  made on  double  cylinder  and dial rib  machines  has  remained
somewhat sluggish. At the same time, the sweater  manufacturing  industry in the
United  States  and in the  United  Kingdom  continues  to  display  substantial
weakness.

In September 1996, the Company was appointed the exclusive distributor in Mexico
for all machines  manufactured  by the Lonati and Santoni  companies,  effective
January 2, 1997.

LIQUIDITY AND CAPITAL RESOURCES

At September 28, 1996, the Company's working capital totaled $16.9 million. This
figure  represents an increase of $575,000 from the  Company's  working  capital
position at the end of the prior  fiscal  year,  June 29,  1996.  The  Company's
current ratio at September 28 was 1.96 to 1.00. At June 29, 1996, it was 1.92 to
1.00.

Operating  activities  used $2.7 million in cash in the quarter ended  September
28, 1996, as compared to $3.4 million used by operating  activities in the first
quarter of last year. In the current  quarter,  this  requirement  was generated
essentially by increases in accounts  receivable,  inventories and other current
assets, and a decrease in customer deposits,  partially offset by an increase in
accounts  payable.  In the first  quarter of last  year,  this  requirement  was
generated by substantial  reductions in accounts payable,  partially offset by a
reduction in accounts receivable.

Financing  activities  provided  $37,000  in the  current  first  quarter.  This
compares with $1,350,000 provided by a bank loan in the prior year.

Overall,  net cash decreased by $2.8 million in the first quarter of fiscal 1997
as compared with a net cash decrease of $2.0 million in the same quarter of last
year.

The Company presently has no material  commitments for capital  expenditures and
does not anticipate incurring such commitments in the balance of fiscal 1997.

SEASONALITY AND OTHER FACTORS

There are  certain  seasonal  factors  that may affect the  Company's  business.
Traditionally,  manufacturing businesses in Italy close for the month of August,
and the  Company's  customers  close  for one  week in  July.  Consequently,  no
shipments  or  deliveries,  as the case may be, of machines  distributed  by the
Company  that are  manufactured  in Italy are made during  these  periods in the
Company's  first  quarter.  In  addition,   manufacturing  businesses  in  Italy
generally close for two weeks in December,  during the Company's second quarter.
Fluctuations  in  customer  orders or other  factors  also may  cause  quarterly
variations in net revenues from year to year.

EFFECTS OF INFLATION AND CHANGING PRICES

Management  believes  that  inflation  has  not  had a  material  effect  on the
Company's operations.

                                                                      Page 9

<PAGE>


A  substantial  portion of the  Company's  machine and spare part  purchases are
denominated and payable in Italian lira. Currency fluctuations of the lira could
result in  substantial  price  level  changes  and  therefore  impede or promote
import/export  sales  and  substantially  impact  profits.  However,  to  reduce
exposure  to adverse  foreign  currency  fluctuations  during  the  period  from
customer  orders to payment for goods  sold,  the  Company  enters into  forward
foreign exchange  contracts.  The Company is not able to assess the quantitative
effect that such currency fluctuations could have upon the Company's operations.
There can be no assurance that  fluctuations in foreign currency  exchange rates
will not have a significantly adverse effect on future operations.

                                                                      Page 10
<PAGE>


                           PART II. OTHER INFORMATION



Item 6.   Exhibits and reports on Form 8-K

           (a)  No reports on Form 8-K were  filed by the  Registrant  during or
                applicable to the period reported here.

           (b)  Exhibit 11. - Computation of Net Income (Loss) Per Share



<PAGE>


                                   SIGNATURES


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.


                                            SPEIZMAN INDUSTRIES, INC.
                                                  (Registrant)




Date:      November 12, 1996                /s/ Robert S. Speizman
       ------------------------------       ----------------------
                                            Robert S. Speizman
                                            President


Date:     November 12, 1996                 /s/ Josef Sklut
      -------------------------------      ------------------------
                                            Josef Sklut
                                            Vice President-Finance
                                            (Chief Financial Officer)