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 December 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                                 February 5, 1997
   ---------------------                                ----------------

   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>


                                                                           December 28,                June 29,
                                                                              1996                       1996
                                                                           (Unaudited)
<S>                                                                 <C>                         <C>
ASSETS
CURRENT:
    Cash and cash equivalents                                       $             611,252       $         7,981,723
    Accounts receivable, less allowances of
      $382,771 and $259,956                                                    15,936,268                12,160,449
    Inventories                                                                12,764,925                11,639,552
    Prepaid expenses and other current assets                                   3,371,005                 2,340,111
                                                                           --------------            --------------
       TOTAL CURRENT ASSETS                                                    32,683,450                34,121,835
                                                                            -------------             -------------

PROPERTY AND EQUIPMENT:
    Leasehold improvements                                                        747,690                   550,684
    Machinery and equipment                                                     1,574,606                 1,208,508
    Furniture, fixtures and transportation equipment                            1,125,971                 1,218,570
                                                                           --------------            --------------
       Total                                                                    3,448,267                 2,977,762
    Less accumulated depreciation and amortization                             (1,606,289)               (1,525,058)
                                                                           --------------            --------------

       NET PROPERTY AND EQUIPMENT                                               1,841,978                 1,452,704
                                                                           --------------            --------------

OTHER                                                                             359,792                   574,685
                                                                          ---------------            --------------

                                                                    $          34,885,220       $        36,149,224
                                                                             ============              ============

</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                                                         Page 3
<PAGE>


                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                             December 28,              June 29,
                                                                                1996                     1996
                                                                             (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                                                    <C>                       <C>
CURRENT LIABILITIES:
    Note payable-bank                                                  $             500,000     $               --
    Accounts payable                                                              13,680,313             14,864,567
    Customers' deposits                                                            1,044,353              2,723,466
    Accrued expenses                                                                 454,880                209,881
    Current maturities of long-term debt                                               2,105                 11,051
                                                                           -----------------       ----------------

       TOTAL CURRENT LIABILITIES                                                  15,681,651             17,808,965

LONG-TERM DEBT                                                                       122,105                137,334
                                                                             ---------------         --------------
       TOTAL LIABILITIES                                                          15,803,756             17,946,299
                                                                               -------------           ------------


STOCKHOLDERS' EQUITY:
    Common  stock  -  par  value  $.10;  authorized  20,000,000  shares,  issued
       3,262,866; and authorized 6,000,000,
       issued 3,236,199 shares                                                       326,287                323,620
    Additional paid-in capital                                                    12,512,299             12,459,965
    Retained earnings                                                              6,353,729              5,524,360
    Foreign currency translation adjustment                                          (11,054)                (5,223)
                                                                             ---------------      -----------------
       Total                                                                      19,181,261             18,302,722
    Treasury stock, at cost, 27,600 common shares                                    (99,797)               (99,797)
                                                                             ---------------        ---------------
       TOTAL STOCKHOLDERS' EQUITY                                                 19,081,464             18,202,925
                                                                                ------------            -----------

                                                                       $          34,885,220     $       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)                               (Unaudited)
                                                 For the Three Months Ended                  For the Six Months Ended
                                                12-28-96             12-30-95             12-28-96             12-30-95
                                               (13 Weeks)           (13 Weeks)           (26 Weeks)           (26 Weeks)
                                               ----------           ----------           ----------           ----------

<S>                                       <C>                   <C>                  <C>                  <C>              
REVENUES                                  $      16,464,552     $       9,123,704    $      33,431,297    $      17,462,554
                                           ----------------          ------------           ----------          -----------

COSTS AND EXPENSES:
    Cost of sales                                13,795,624             8,267,912           27,903,401           15,863,583
    Selling expenses                              1,418,921             1,015,167            2,782,539            1,937,430
    General and administrative
      expenses                                      742,496               384,940            1,423,371              754,702
                                             --------------         -------------         ------------        -------------
    Total costs and expenses                     15,957,041             9,668,019           32,109,311           18,555,715
                                               ------------          ------------          -----------          -----------
                                                    507,511              (544,315)           1,321,986           (1,093,161)
NET INTEREST INCOME                                  (7,629)              (21,208)             (54,383)              (3,016)
                                            ---------------         -------------        -------------       --------------

INCOME (LOSS) BEFORE
    TAXES ON INCOME                                 515,140              (523,107)           1,376,369           (1,090,145)

TAXES (BENEFIT)
    ON INCOME                                       194,000              (165,000)             547,000             (353,000)
                                               ------------          ------------         ------------         ------------

NET INCOME (LOSS)                         $         321,140     $        (358,107)   $         829,369    $        (737,145)
                                               ============          ============         ============         ============

NET INCOME (LOSS) PER
    SHARE                                           $  0.10             $   (0.11)            $   0.25            $   (0.23)
                                                     ======              ========              =======             ========

Weighted average number of
    common and equivalent shares                  3,359,341             3,244,835            3,338,888            3,277,935



</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 Six Months Ended
                                                                                    12-28-96            12-30-95
                                                                                  (26 Weeks)           (26 Weeks)
                                                                              -------------------    ------------
<S>                                                                           <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                                         $          829,369     $       (737,145)
Adjustments to reconcile net income (loss) to cash used
    by operating activities:
      Depreciation and amortization                                                      181,767               84,894
      Provision for inventory obsolescence                                               100,000              100,000
      Foreign currency translation adjustment                                             (5,831)              (4,592)
      (Increase) decrease in:
        Accounts receivable                                                           (3,775,819)           5,949,247
        Inventories                                                                   (1,225,373)           2,784,409
        Prepaid expenses and other current assets                                     (1,030,894)             215,405
        Other assets                                                                     214,893             (137,885)
      Increase (decrease) in:
        Accounts payable                                                              (1,184,254)          (8,067,911)
        Customers' deposits                                                           (1,679,113)             254,615
        Accrued expenses                                                                 244,999             (611,819)
                                                                                   -------------        -------------
    Net cash used in operating activities                                             (7,330,256)            (170,782)
                                                                                  --------------         ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures - other equipment                                              (222,044)             (31,821)
    Capital expenditures - equipment leased to customers                                (360,634)            (434,630)
    Disposition of property and equipment                                                 11,637                5,883
                                                                                   -------------       --------------
      Net cash used in investing activities                                             (571,041)            (460,568)
                                                                                    ------------         ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net proceeds from note payable - bank                                                500,000                   --
    Principal payments on long-term debt                                                 (24,175)              (1,302)
    Issuance of common stock for stock options                                            55,001                   --
                                                                                    ------------     ------------------
      Net cash provided by (used in) financing activities                                530,826               (1,302)
                                                                                     -----------       --------------

NET DECREASE IN CASH                                                                  (7,370,471)            (632,652)
CASH AT BEGINNING OF PERIOD                                                            7,981,723            2,436,859
                                                                                     -----------          -----------
CASH AT END OF PERIOD                                                         $          611,252     $      1,804,207
                                                                                    ============          ===========

Supplemental Disclosures:
    Cash paid during period for:
      Interest                                                                $           41,224     $         64,046
      Income taxes                                                                       643,865              106,929


</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:

                                               December 28,         June 29,
                                                    1996              1996
                                                (unaudited)
           Machines                            $  8,884,397       $  8,211,242
           Parts and supplies                     3,880,528          3,428,310
                                                -----------        -----------
                     Total                      $12,764,925        $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  $7.3  million to $16.4  million in the  Company's
current  quarter  ended  December  28, 1996.  That  compares to revenues of $9.1
million in the same quarter of last year. The improved  revenues resulted from a
$6.8  million  increase  in sales of  hosiery  manufacturing  equipment,  a $0.5
million increase in sales of dyeing and finishing equipment,  and a $0.4 million
increase in parts  sales and other  revenues.  These  increases  were  partially
offset by a decline of $0.4 million in sales of sweater manufacturing equipment.

In the current six months ended 12/28/96, revenues increased by $15.9 million to
$33.4  million as compared to $17.5  million in revenues in the first six months
of last year. The improved revenues in the six months year-to-date resulted from
a $15.1  million  increase  in sales of hosiery  manufacturing  equipment,  $0.4
million in circular fabric machine sales, and an $0.8 million increase in dyeing
and finishing  equipment sales. These favorable  variances were partially offset
by a $0.5 million decrease in sales of sweater equipment.

Cost of sales in the current  second  quarter were 83.8% of revenues as compared
to  90.6% in the  same  period  of last  year.  Similarly,  cost of sales in the
year-to-date  were 83.5% as  compared  to 90.8% in the same period of last year.
These favorable  shifts in both periods  resulted  essentially from the improved
volume in the  hosiery  equipment  sector  coupled  with  improved  margins.  In
addition, service expenses, which are a component of cost of sales, increased at
a  substantially  lower rate than the sales rate of increase.  Service  expenses
accounted for 4.1 points of the 83.8% in cost of sales in the second  quarter of
the current  fiscal year as compared to 5.5 points of the 90.6% cost of sales in
the second  quarter of the prior  year.  In the  current  year-to-date,  service
expense  accounted  for 3.7 points of the 83.5% cost of sales as compared to 5.8
points of the 90.8% cost of sales in the year-to-date a year ago.

Selling  expenses in the latest  quarter  increased  by  $404,000  over the same
quarter  of last  year.  In the  year-to-date,  selling  expenses  increased  by
$846,000 as compared to the prior first six months year-to-date.  Sales salaries
and  commissions  accounted for $304,000 of the second quarter  increase and for
$585,000 of the year-to-date  increase,  reflecting  increased sales activities.
Increases in letters of credit expense and in rental costs accounted for most of
the remaining increases.

General and  administrative  expenses in the current second quarter increased by
about $357,000. In the year-to-date, these expenses increased by $668,000. These
increases reflect increases in salaries,  increases in profit-related  executive
bonuses, increases in bad debt reserve provisions and in costs associated with a
computer installation.



                                                                         Page 8
<PAGE>

Net income for the current  second  quarter  was  $321,000 or $0.10 per share as
compared to a loss of $358,000 or $0.11 per share in the second  quarter of last
year. Net income in the six months year-to-date was $829,000 or $0.25 a share as
compared  to a loss of $737,000 or $0.23 a share in the first six months of last
year.

OUTLOOK

During the first six  months of the  Company's  current  fiscal  year,  the sock
industry  served by the Company has continued to show  improvements.  Demand for
new Lonati sock  manufacturing  equipment  and for Conti  Complett  sock seaming
equipment continue to be favorable.

At the same time, the sweater manufacturing industry in the United States and in
the United Kingdom continue to deteriorate.  During the current fiscal year, the
Company is  consolidating  its current sweater machine sales operations with its
circular fabric machine sales division, thereby closing two sales offices.

As of January 2, 1997,  the Company  became the exclusive  distributor in Mexico
for all machines  manufactured by the Lonati and Santoni companies.  The Company
is in the  process  of  incorporating  a  wholly-owned  subsidiary  to carry out
operations in Mexico.  In the  meantime,  an office has been  established  and a
salesperson has been employed in Mexico City.

LIQUIDITY AND CAPITAL RESOURCES

At December 28, 1996, the Company's working capital totaled $17.0 million.  This
compares to $16.3  million at the end of the prior  fiscal year.  The  Company's
current  ratio at December  28, was 2.08 to 1.0. At the end of the prior  fiscal
year, the ratio was 1.92 to 1.00.

Operating  activities in the current  year-to-date used $7.3 million largely due
to  substantial  increases  in  accounts  receivable,  inventories  and  prepaid
expenses and other current assets and due to  substantial  decreases in accounts
payable and customers' deposits. In the prior year-to-date, operating activities
used $171,000.

Net cash used in investing activities totaled $571,000 as compared to a usage of
$461,000 in the prior six months year-to-date.

Financing  activities provided $531,000 in the current  year-to-date as compared
to a usage of $1,000 in the first six months of the prior year.

Overall net cash decreased by $7.4 million as compared to a $0.6 decrease in the
prior year-to-date.

On November  19, 1996,  the  Company's  stockholders  and  directors  adopted an
amendment  to the  Company's  Certificate  of  Incorporation,  to  increase  the
authorized  number of shares of the Company's  common stock, par value $0.10 per
share, from 6,000,000 to 20,000,000.

                                                                        Page 9

<PAGE>

The Company renewed its credit facility with  NationsBank,  N.A. on December 19,
1996.  This facility  provides  $25.0 million  including up to a maximum of $4.0
million for direct  borrowings,  with the balance  available for the issuance of
documentary letters of credit. Amounts outstanding under the line of credit bear
interest  at the greater of prime plus 1% or the Federal  Funds  Effective  Rate
plus 1.5% for base rate loans and the 30, 60, or 90 day LIBOR rate plus 2.0% for
LIBOR loans. This line of credit now expires October 31, 1999.

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.

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>




<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 11
<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:      February 11, 1997                /s/ Robert S. Speizman
       --------------------------------     ----------------------
                                            Robert S. Speizman
                                            President


Date:     February 11, 1997                 /s/ Josef Sklut
                                            Josef Sklut
                                            Vice President-Finance
                                            (Chief Financial Officer)


                                                                      Page 12