UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549


                                FORM 10-QSB

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

             FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

                                    OR

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

COMMISSION FILE NUMBER 	I-4334

                           SUNAIR ELECTRONICS, INC.
-----------------------------------------------------------------------------
          (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


           FLORIDA                                            59-0780772
-------------------------------                           -------------------
(STATE OR OTHER JURISDICTION OF                            (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                           IDENTIFICATION NO.)


3005 SW THIRD AVE., FT. LAUDERDALE, FL                           33315
---------------------------------------                   ------------------
(ADDRESS OR PRINCIPAL EXECUTIVE OFFICE)                       (ZIP CODE)


REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE          (954) 525-1505
                                                          ------------------


                                   NONE
-----------------------------------------------------------------------------
            (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                       IF CHANGED SINCE LAST REPORT)

CHECK WHETHER THE ISSUER (1) FILED ALL REPORTS REQUIRED TO BE FILED BY
SECTION 13 OR 15(d) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS (OR FOR
SUCH SHORTER PERIOD 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   [ ]

REGISTRANT'S COMMON STOCK - PAR VALUE 10 CENTS, OUTSTANDING AS OF
JUNE 30, 2002 - 3,692,570 SHARES.


<PAGE>


                   SUNAIR ELECTRONICS, INC. AND SUBSIDIARY

                                   INDEX
                                   *****
                                                                     PAGE NO.
                                                                     ********
PART I.  FINANCIAL INFORMATION:

          CONSOLIDATED CONDENSED BALANCE SHEETS -
             JUNE 30, 2002 AND SEPTEMBER 30, 2001                        3

          CONSOLIDATED CONDENSED STATEMENTS OF INCOME -
             NINE MONTHS ENDED JUNE 30, 2002 AND 2001                    4

          CONSOLIDATED CONDENSED STATEMENTS OF INCOME -
             THREE MONTHS ENDED JUNE 30, 2002 AND 2001                   5

          CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS -
             NINE MONTHS ENDED JUNE 30, 2002 AND 2001                    6

           NOTES TO CONSOLIDATED CONDENSED FINANCIAL
             STATEMENTS                                                 7-9

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
             CONSOLIDATED CONDENSED STATEMENTS                         10-11

PART II.  OTHER INFORMATION

          OTHER INFORMATION                                              12

          EXHIBITS AND REPORTS ON FORM 8-K                               12

          SIGNATURES                                                     13




                                   -2-

<PAGE>



                      PART I. FINANCIAL INFORMATION

                 SUNAIR ELECTRONICS, INC. AND SUBSIDIARY
                  CONSOLIDATED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                 (UNAUDITED)      (AUDITED)
                                                   6/30/02         9/30/01
                                                 -----------     -----------
<S>                                              <C>             <C>
ASSETS
------

CURRENT ASSETS:
---------------
  CASH AND CASH EQUIVALENTS                      $ 2,144,827     $ 2,015,918
  ACCOUNTS RECEIVABLE                              1,612,790       1,118,377
  INVENTORIES                                      5,623,750       5,674,421
  SHORT TERM INVESTMENTS                           1,077,864          81,001
  PREPAID EXPENSES AND OTHER
    CURRENT ASSETS                                    69,816         136,139
                                                 -----------     -----------
     TOTAL CURRENT ASSETS                         10,529,047       9,025,856
                                                 -----------     -----------

INVESTMENTS                                        3,522,685       3,045,731
-----------

NOTE RECEIVABLE                                      302,183         302,183
---------------

PROPERTY, PLANT AND EQUIPMENT-NET                    742,417         814,038
---------------------------------

TOTAL ASSETS                                     $15,096,332     $13,187,808
============                                     ===========     ===========


LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------

CURRENT LIABILITIES:
--------------------

  ACCOUNTS PAYABLE AND ACCRUED EXPENSES          $ 1,183,474     $   411,084
                                                 -----------     -----------

     TOTAL CURRENT LIABILITIES                     1,183,474         411,084
                                                 -----------     -----------

LONG-TERM LIABILITIES:
----------------------

  LONG-TERM PORTION OF INCOME TAXES PAYABLE          371,000         371,000
                                                 -----------     -----------

STOCKHOLDERS' EQUITY
--------------------

  PREFERRED STOCK, NO PAR VALUE,
     500,000 SHARES AUTHORIZED,
     NO SHARES ISSUED                                      0               0
  COMMON STOCK, $.10 PAR VALUE,
     6,000,000 SHARES AUTHORIZED,
     3,692,570 SHARES ISSUED
     AND OUTSTANDING                                 369,257         369,257
  ADDITIONAL PAID-IN-CAPITAL                       2,606,899       2,606,899
  RETAINED EARNINGS                               10,565,702       9,429,568
                                                 -----------     -----------
                                                  13,541,858      12,405,724

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY         $15,096,332     $13,187,808
========================================         ===========     ===========

</TABLE>



                                   -3-

<PAGE>


                CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                              (UNAUDITED)

<TABLE>
<CAPTION>
                                                     NINE MONTHS ENDED
                                                     -----------------
                                                   6/30/02         9/30/01
                                                 -----------     -----------
<S>                                              <C>             <C>
SALES                                            $ 4,544,512     $ 3,795,481
COST OF SALES                                      2,941,045       3,047,240
                                                 -----------     -----------

GROSS PROFIT                                       1,603,467         748,241
SELLING, GENERAL & ADMINISTRATIVE EXPENSES         1,332,619       1,092,626
                                                 -----------     -----------

OPERATING INCOME (LOSS)                              270,848      (  344,385)
OTHER INCOME:
  INTEREST INCOME                                    192,220         216,862
  OTHER, NET (NOTE 8)                              1,338,067           2,404
                                                 -----------     -----------

INCOME (LOSS) BEFORE (PROVISION)
  BENEFIT FOR INCOME TAXES                         1,801,135      (  125,119)

(PROVISION) BENEFIT FOR
  INCOME TAXES                                    (  665,000)         46,500
                                                 -----------     -----------

NET INCOME (LOSS)                                $ 1,136,135     $ (  78,619)
                                                 ===========     ===========

WEIGHTED AVERAGE NUMBER OF COMMON
  SHARES OUTSTANDING                               3,692,570       3,692,570

NET INCOME PER SHARE (BASIC AND DILUTED)         $      0.31     $ (    0.02)
                                                 ===========     ===========

</TABLE>




                                   -4-

<PAGE>



               CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                               (UNAUDITED)

<TABLE>
<CAPTION>

                                                      THREE MONTHS ENDED
                                                      ------------------
                                                   6/30/02         6/30/01
                                                 -----------     -----------
<S>                                              <C>             <C>
SALES                                            $ 1,659,932     $ 1,255,877
COST OF SALES                                      1,203,299       1,053,353

                                                 -----------     -----------
GROSS PROFIT                                         456,633         202,524
SELLING, GENERAL & ADMINISTRATIVE EXPENSES           439,532         353,431
                                                 -----------     -----------

OPERATING INCOME (LOSS)                               17,101      (  150,907)
OTHER INCOME:
  INTEREST INCOME                                     67,589          68,498
  OTHER, NET (NOTE 8)                              1,335,565           2,767
                                                 -----------     -----------
INCOME (LOSS) BEFORE (PROVISION)
  BENEFIT FOR INCOME TAXES                         1,420,255      (   79,642)

(PROVISION) BENEFIT FOR
  INCOME TAXES                                    (  528,200)         32,700

                                                 -----------     -----------

NET INCOME (LOSS)                                $   892,055     $(   46,942)
                                                 ===========     ===========

WEIGHTED AVERAGE NUMBER OF COMMON
  SHARES OUTSTANDING                               3,692,570       3,692,570

NET INCOME PER SHARE (BASIC AND DILUTED)         $      0.24     $(     0.01)
                                                 ===========     ===========

</TABLE>



                                   -5-

<PAGE>




             CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
                               (UNAUDITED)

<TABLE>
<CAPTION>

                                                      NINE MONTHS ENDED
                                                      -----------------
                                                   6/30/02         6/30/01
                                                 -----------     -----------
<S>                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)                                $ 1,136,135     $(   78,619)
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO
 NET CASH PROVIDED BY OPERATING ACTIVITIES
   DEPRECIATION AND AMORTIZATION                     102,185         103,720
   GAIN FROM SALE OF PROPERTY                     (1,334,525)              0
   CHANGES IN OPERATING ACTIVITIES:
     (INCR) DECR IN ACCOUNTS RECEIVABLE           (  494,413)        340,436
    DECR IN INVENTORY                                 50,671         500,864
     (INCR) DECR IN OTHER ASSETS                      66,323      (   21,444)
     (DECR) IN ACCOUNTS PAYABLE AND
       ACCRUED EXPENSES                              107,390      (  162,687)
     (INCR) IN NOTE RECEIVABLE                             0      (    1,335)
     (DECR) INCR IN ACCRUED INCOME TAX               665,000      (  105,853)
                                                 -----------     -----------

NET CASH PROVIDED BY OPERATING ACTIVITIES            298,766         575,082
                                                 -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
 (PURCHASE) OF PROPERTY, PLANT & EQUIPMENT        (   85,130)     (  121,234)
SALE (PURCHASES) OF INVESTMENTS - NET             (1,473,817)        340,504
PROCEEDS FROM SALE OF PROPERTY                     1,389,090               0
                                                 -----------     -----------

NET CASH PROVIDED (USED) BY INVESTING
 ACTIVITIES                                       (  169,857)        219,270
                                                 -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:                      0               0
                                                 -----------     -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS            128,909         794,352
CASH AND CASH EQUIVALENTS AT BEGINNING
 OF PERIOD                                         2,015,918         629,968
                                                 -----------     -----------
CASH AND CASH EQUIVALENTS AT END
 OF PERIOD                                       $ 2,144,827     $ 1,424,320
                                                 ===========     ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
 CASH PAID DURING THE PERIOD FOR INTEREST        $         0     $         0
                                                 ===========     ===========

 CASH PAID DURING THE PERIOD FOR INCOME
  TAXES                                          $         0     $   110,000
                                                 ===========     ===========

</TABLE>




                                   -6-

<PAGE>





              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.    BASIS OF PRESENTATION
      THE ACCOMPANYING UNAUDITED FINANCIAL STATEMENTS HAVE BEEN PREPARED IN
      ACCORDANCE WITH THE INSTRUCTIONS TO FORM 10-QSB AND DO NOT INCLUDE ALL
      OF THE INFORMATION AND FOOTNOTES REQUIRED BY GENERALLY ACCEPTED
      ACCOUNTING PRINCIPLES FOR COMPLETE FINANCIAL STATEMENTS. IN THE
      OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING OF NORMAL RECURRING
      ACCRUALS) CONSIDERED NECESSARY FOR A FAIR PRESENTATION HAVE BEEN
      INCLUDED. OPERATING RESULTS FOR THE NINE MONTHS ENDED JUNE 30, 2002
      ARE NOT NECESSARILY INDICATIVE OF THE RESULTS THAT MAY BE EXPECTED FOR
      THE FISCAL YEAR ENDING SEPTEMBER 30,2002. FOR FURTHER INFORMATION
      REFER TO THE CONSOLIDATED FINANCIAL STATEMENTS AND FOOTNOTES THERETO
      INCLUDED IN THE COMPANY'S ANNUAL REPORT IN FORM 10-KSB FOR THE FISCAL
      YEAR ENDED SEPTEMBER 30, 2001.

2.    ACCOUNTING POLICIES

(A)   PRINCIPLES OF CONSOLIDATION-
      THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS INCLUDE THE
      ACCOUNTS OF THE COMPANY AND ITS SUBSIDIARY. ALL SIGNIFICANT INTER-
      COMPANY ACCOUNTS AND TRANSACTIONS HAVE BEEN ELIMINATED IN
      CONSOLIDATION.

(B)   PROPERTY, PLANT AND EQUIPMENT-
      PROPERTY, PLANT AND EQUIPMENT IS DEPRECIATED OVER THE ESTIMATED USEFUL
      LIVES OF THE ASSETS USING BOTH STRAIGHT-LINE AND ACCELERATED METHODS.

(C)   RESEARCH AND DEVELOPMENT COSTS-
      ALL RESEARCH AND DEVELOPMENT COSTS ARE CHARGED TO EXPENSE AS INCURRED.

(D)   EARNINGS PER COMMON SHARE-
      EARNINGS PER COMMON SHARE ARE COMPUTED BASED ON WEIGHTED AVERAGE
      NUMBER OF SHARES OUTSTANDING DURING EACH PERIOD.

(E)   INVENTORIES-
      INVENTORIES CONSIST OF THE FOLLOWING:

<TABLE>
<CAPTION>
                                              6/30/02            9/30/01
                                             ----------         ----------
<S>            <C>                           <C>                <C>
               RAW MATERIALS                 $1,992,983         $1,848,096
               WORK IN PROCESS                3,165,265          3,475,703
               FINISHED GOODS                   465,502            350,622
                                             ----------         ----------
                                             $5,623,750         $5,674,421
</TABLE>                                     ==========         ==========

(F)   INVESTMENTS -

      INVESTMENTS INCLUDE PRIVATE EXPORT FUNDING CORPORATION (PEFCO) NOTES.
      THESE NOTES ARE GUARANTEED BY THE EXPORT-IMPORT BANK OF THE UNITED
      STATES, AN AGENCY OF THE UNITED STATES.  THE COMPANY HAS CLASSIFIED
      THESE SECURITIES AS "HELD-TO-MATURITY" SECURITIES, IN ACCORDANCE WITH
      STATEMENT OF FINANCIAL ACCOUNTING STANDARDS (SFAS) NO. 115,
      "ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES".
      HELD-TO-MATURITY SECURITIES ARE RECORDED AT AMORTIZED COST.
      AMORTIZATION OF RELATED DISCOUNTS OR PREMIUMS IS INCLUDED IN THE
      DETERMINATION OF NET INCOME.




                                   -7-

<PAGE>





3.    INCOME TAXES:

      DURING 1995, IT WAS DETERMINED THAT CONTINUED OPERATIONS OF ITS
      INTEREST CHARGE-DOMESTIC INTERNATIONAL SALES CORPORATION (IC-DISC)
      SUBSIDIARY'S TAX ELECTION WAS NO LONGER ADVANTAGEOUS TO THE COMPANY.
      ACCORDINGLY, THE TAX ELECTION OF THE SUBSIDIARY WAS DISCONTINUED AND
      ITS RETAINED EARNINGS OF APPROXIMATELY $3,200,000 WERE DISTRIBUTED TO
      THE COMPANY.  FEDERAL TAX REGULATIONS PROVIDE FOR THE TAXATION OF SUCH
      DISTRIBUTION OVER A TEN YEAR PERIOD IN EQUAL ANNUAL INCREMENTS.
      UTILIZING THE MAXIMUM TAX RATES, THE INCOME TAX CONSEQUENCE OF SUCH
      DISTRIBUTION WILL APPROXIMATE $123,000 PER YEAR.  NO INTEREST IS
      PAYABLE ON THIS UNPAID PORTION.

4.    PREFERRED STOCK:

      THE COMPANY HAS 500,000 AUTHORIZED SHARES OF PREFERRED STOCK, NO PAR
      VALUE, THAT MAY BE ISSUED AT SUCH TERMS AND PROVISIONS AS DETERMINED
      BY THE BOARD OF DIRECTORS. NONE ARE OUTSTANDING.

5.    STOCK OPTIONS:

      AS OF JUNE 30, 2002, THE COMPANY HAD AUTHORIZED 400,000 SHARES OF THE
      COMPANY'S COMMON STOCK FOR NON-QUALIFIED STOCK OPTIONS.  AS OF THE
      CURRENT DATE, THE COMPANY HAD ISSUED OPTIONS TO PURCHASE 275,000
      SHARES AT $2.25 PER SHARE TO KEY EMPLOYEES OF THE COMPANY.  OPTIONS
      FOR 93,400 SHARES ARE EXERCISABLE BEGINNING IN THE SECOND YEAR OF THE
      OPTIONS PERIOD AND 90,800 SHARES IN EACH OF THE THIRD AND FOURTH
      YEARS.  THE OPTIONS GRANTED SHALL BE EXERCISABLE UP TO AND INCLUDING
      FIVE YEARS FROM THE DATE OF GRANT.  NONE HAVE BEEN EXERCISED.

6.    RECENT ACCOUNTING PRONOUNCEMENTS

      SFAS NO. 133, "ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING
      ACTIVITIES", IS EFFECTIVE FOR FINANCIAL STATEMENTS ISSUED FOR FISCAL
      YEARS BEGINNING AFTER JUNE 15, 2000.  SFAS NO. 133 ESTABLISHES
      ACCOUNTING AND REPORTING STANDARDS FOR DERIVATIVE INSTRUMENTS,
      INCLUDING CERTAIN DERIVATIVE INSTRUMENTS EMBEDDED IN OTHER CONTRACTS,
      AND FOR HEDGING ACTIVITIES. SFAS NO. 133 HAD NO MATERIAL AFFECT ON THE
      COMPANY'S FINANCIAL STATEMENTS.

      SFAS NO. 141, "BUSINESS COMBINATIONS" ESTABLISHES ACCOUNTING AND
      REPORTING STANDARDS FOR BUSINESS COMBINATIONS, INCLUDES APPLICATION OF
      THE PURCHASE METHOD AND DETERMINING THE COST OF THE ACQUIRED ENTITY.
      THE PROVISION OF THIS STATEMENT SHALL APPLY TO ALL BUSINESS
      COMBINATIONS INITIATED AFTER JUNE 30, 2001.  USE OF THE POOLING-OF-
      INTERESTS METHOD FOR THOSE BUSINESS COMBINATIONS IS PROHIBITED.  ALSO,
      THE STATEMENT SHALL APPLY TO ALL BUSINESS COMBINATIONS ACCOUNTED FOR
      BY THE PURCHASE METHOD FOR WHICH THE DATE OF ACQUISITION IS JULY 1,
      2001, OR LATER. SFAS NO. 141 HAD NO MATERIAL AFFECT ON THE COMPANY'S
      FINANCIAL STATEMENTS.

      SFAS NO. 142, "GOODWILL AND OTHER INTANGIBLE ASSETS", ESTABLISHES
      ACCOUNTING AND REPORTING STANDARDS FOR ACQUIRED GOODWILL AND OTHER
      INTANGIBLE ASSETS.  THIS STATEMENT ADDRESSES HOW INTANGIBLE ASSETS
      THAT ARE ACQUIRED INDIVIDUALLY OR WITH A GROUP OF OTHER ASSETS SHOULD
      BE ACCOUNTED FOR AND THE INITIAL RECOGNITION IN THE FINANCIAL
      STATEMENTS. THE PROVISIONS OF THIS STATEMENT ARE REQUIRED TO BE
      APPLIED STARTING WITH FISCAL YEARS BEGINNING AFTER DECEMBER 15, 2001.
      EARLY APPLICATION IS PERMITTED FOR ENTITIES WITH FISCAL YEARS
      BEGINNING AFTER MARCH 15, 2001, PROVIDED THAT THE FIRST INTERIM
      FINANCIAL STATEMENTS HAVE NOT PREVIOUSLY BEEN ISSUED. SFAS NO. 142
      WILL HAVE NO MATERIAL AFFECT ON THE COMPANY'S FINANCIAL STATEMENTS.




                                   -8-

<PAGE>




7.    FINANCIAL INSTRUMENTS:

      THE CARRYING AMOUNTS OF CASH AND CASH EQUIVALENTS, ACCOUNTS
      RECEIVABLE, LOANS PAYABLE, ACCOUNTS PAYABLE AND ACCRUED INCOME TAXES
      PAYABLE APPROXIMATE FAIR VALUE DUE TO THE SHORT MATURITY OF THE
      INSTRUMENTS AND RESERVES FOR POTENTIAL LOSSES, AS APPLICABLE.

8.    OTHER INCOME:

      FOR THE QUARTER ENDED JUNE 30, 2002, OTHER INCOME INCLUDES A GAIN OF
      $1,334,525 REALIZED FROM THE SALE OF THE COMPANY'S BUILDING AND LAND
      LOCATED AT 3101 S.W. THIRD AVENUE TO THE SOUTH OF THE COMPANY'S
      REMAINING FACILITIES LOCATED AT 3005 S.W. THIRD AVENUE.




                                   -9-

<PAGE>


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

LIQUIDITY:
__________


DURING THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR ENDING JUNE 30, 2002,
THE COMPANY MAINTAINED CASH AND SHORT TERM INVESTMENTS MORE THAN ADEQUATE TO
COVER KNOWN REQUIREMENTS, UNFORESEEN EVENTS OR UNCERTAINTIES THAT MIGHT OCCUR.
DURING THE NINE MONTH PERIOD, CASH AND SHORT TERM INVESTMENTS MAINTAINED AN
AVERAGE BALANCE OF $2,339,000, COMPARED TO AN AVERAGE BALANCE OF $1,540,000
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2001. SHORT TERM INVESTMENTS ARE
BONDS AND CERTIFICATES OF DEPOSIT THAT ARE READILY AVAILABLE FOR IMMEDIATE
USE SHOULD THE OCCASION ARISE. IT IS ANTICIPATED THAT THE COMPANY WILL
REMAIN AS LIQUID DURING THE REST OF FISCAL 2002. INVENTORIES CONTAIN NO
OBSOLESCENCE AS ADJUSTMENTS ARE MADE AS THEY OCCUR. ACCOUNTS AND NOTES
RECEIVABLE CONTAIN NO BAD DEBTS. INTERIM NON CASH RESERVES ARE MAINTAINED TO
COVER WARRANTY REPAIRS AND OTHER CHARGES THAT MAY BE IN DISPUTE. ALL MONETARY
TRANSACTIONS ARE IN U.S. DOLLARS AND NO LETTERS OF CREDIT INVOLVE FOREIGN
EXCHANGE.

CAPITAL RESOURCES:
__________________

DURING THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR, THE COMPANY EXPENDED
$85,130 FOR CAPITAL ASSETS. NO EXPENDITURES ARE CONTEMPLATED FOR PLANT
EXPANSION OR EXTENSIVE MAINTENANCE. THE COMPANY HAS NO LONG TERM DEBT AND NONE
IS CONTEMPLATED.  LIABILITIES CONSIST OF CURRENT ACCOUNTS PAYABLE AND EXPENSES
RELATED TO THE CURRENT ACCOUNTING PERIOD.

RESULTS OF OPERATIONS:
______________________

DURING THE THIRD QUARTER OF THE CURRENT FISCAL YEAR ENDED JUNE 30, 2002,
SHIPMENTS WERE $1,659,932, UP FROM SHIPMENTS OF $1,036,830 FOR QUARTER ENDED
MARCH 31, 2002.  SHIPMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2002 WERE
$4,544,512, UP FROM SHIPMENTS OF $3,795,481 OR 19.7% FOR THE SAME PERIOD ONE
YEAR AGO.  EXPORT SHIPMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2002 WERE
$1,217,711 OR 26.8% OF TOTAL SALES, UP $488,762 OR 67.1% FROM THE SAME PERIOD
ONE YEAR AGO.  DOMESTIC SHIPMENTS FOR THE FIRST NINE MONTHS OF THE CURRENT
FISCAL YEAR WERE $3,326,801 OR 8.5% AHEAD OF SHIPMENTS FOR THE SAME PERIOD ONE
YEAR AGO OF $3,066,532.

SHIPMENTS FOR THE FIRST NINE MONTHS WERE HIGHER THAN SHIPMENTS FOR THE SAME
PERIOD ONE YEAR AGO DUE TO AN $810,000 U.S. GOVERNMENT FOREIGN MILITARY FUNDED
(FMF) DELIVERY WHICH REQUIRED A ONE LOT INSPECTION AND A SINGLE SHIPMENT AS
WELL AS CONTINUING DELIVERIES AGAINST THE COMPANY'S FIVE YEAR CONTRACT WITH
THE U.S. COAST GUARD.

BACKLOG AT JUNE 30, 2002 WAS $538,000 AS COMPARED TO $1,918,000 FOR THE SAME
PERIOD ONE YEAR AGO. NOT INCLUDED IN THIS BACKLOG IS A $600,000 SYSTEMS ORDER
RECEIVED FROM A MAJOR DEFENSE CONTRACTOR, PENDING A DESIGN REVIEW SCHEDULED
FOR THE CURRENT QUARTER AND CONTINUING INTO THE FOURTH QUARTER, TO DEFINITIZE
THE SYSTEM SPECIFICATIONS. ALSO NOT INCLUDED ARE PROJECTED ORDERS ON CONTRACTS
RECEIVED IN FISCAL 1999 AND 2000 IN EXCESS OF $19,000,000 FOR DELIVERY OVER A
FIVE YEAR PERIOD. $1,000,000 IN ORDERS ON THESE CONTRACTS WAS SHIPPED IN
FISCAL 2000, $2,000,000 IN FISCAL 2001, AND $1,600,000 TO DATE FOR THE FIRST
NINE MONTHS OF FISCAL 2002. THE LARGEST DELIVERIES AGAINST THESE CONTRACTS ARE
BUDGETED FOR FISCAL 2002 AND BEYOND.



                                   -10-

<PAGE>




COST OF SALES WAS LOWER AT 64.7% OF SALES IN THE FIRST NINE MONTHS OF FISCAL
2002 AS COMPARED TO 80.3% OF SALES IN THE SAME PERIOD ONE YEAR AGO DUE
PRIMARILY TO REDUCED MANUFACTURING OVERHEADS AND REDUCED MATERIAL COSTS DUE TO
FAVORABLE QUANTITY BUYS. MANAGEMENT CONTINUES TO FOCUS ON IMPROVED OPERATIONS
AND MANUFACTURING PROCESSES FOR IMPROVED EFFICIENCIES AND REDUCED OVERHEADS.
EMPHASIS WILL CONTINUE TO BE PLACED ON REDUCTION OF INVENTORY LEVELS.

INVENTORY AT JUNE 30, 2002 WAS $50,671 LOWER THAN SEPTEMBER 30, 2001 DUE TO
LOWER OVERHEADS AND INCREASED SHIPMENTS IN THE THIRD QUARTER WITH CONTINUING
EFFORTS TO DECREASE INVENTORY AND INCREASE EFFICIENCY. SUFFICIENT INVENTORY
MUST BE MAINTAINED TO MEET CONTRACTUAL OBLIGATIONS AS WELL AS FORECASTED
CUSTOMER REQUIREMENTS. DUE TO AN INCREASED NUMBER OF PRODUCT CONFIGURATIONS,
IT IS NECESSARY TO CARRY A QUANTITY OF MANY DIFFERENT MODELS IN FINISHED
GOODS, AND WORK-IN PROCESS, FOR FAST TURNAROUND REQUIREMENTS WHEN CUSTOMERS
RELEASE DELIVERY ORDERS AGAINST OPEN BASIC ORDERING AGREEMENTS (BOA).

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES OF $1,332,619 INCREASED $239,993
FROM THE SAME PERIOD ONE YEAR AGO DUE PRIMARILY TO INCREASED RECRUITING AND
SALARY EXPENSES IN THE SALES AND MARKETING AREA. THE ADDITION OF A NEW
DIRECTOR OF SALES AND MARKETING AS WELL AS INCREASED SALES STAFF OCCURRED
THIS FISCAL YEAR. SLIGHT INCREASES IN THE DIRECT LABOR FORCE CONTINUE IN
ORDER TO REACH SUFFICIENT FINISHED GOODS LEVELS TO MEET HIGH PROBABILITY
FORECASTS.

INTEREST INCOME DECREASED $24,642 FOR THE FIRST NINE MONTHS OF THE CURRENT
FISCAL YEAR DUE TO LOWER YIELD ON INVESTMENTS.

PLANS CAPITALIZING ON OUR UNIQUE EXPERIENCE, KNOWLEDGE AND ABILITY AS A TOTAL
HIGH FREQUENCY (HF) SOLUTIONS PROVIDER IN LIEU OF THE TRADITIONAL ORDERS FOR
RELIABLE MANUFACTURED HARDWARE ARE YIELDING SUCCESS. BREAKTHROUGH ORDERS HAVE
BEEN RECEIVED FOR INTEGRATED HIGH SPEED HF DATA LINKS (TADIL/LINK 11) FOR TWO
STRATEGIC UNITED STATES AIR FORCE PROGRAMS, AND A NAVAL PROGRAM, REQUIRING
DELIVERY IN THE LAST QUARTER OF FISCAL 2002. THESE PROGRAMS HAVE FUTURE
REQUIREMENTS THAT WILL GENERATE ADDITIONAL ORDERS WITHIN THE NEXT FEW YEARS.

A MAJOR AIR DEFENSE SYSTEMS INTEGRATOR HAS ADVISED US OF THEIR SELECTION TO
USE SUNAIR FOR A SECOND CONTRACT TO DESIGN, TEST AND DOCUMENT THE HIGH
FREQUENCY (HF) RADIO CAPABILITY FOR ANOTHER INTERNATIONAL PROGRAM.
NEGOTIATION IS NEAR COMPLETION FOR THESE MULTI-MODE NETWORKS. THESE
ORDERS, WHICH ORIGINALLY WERE ANTICIPATED IN THE THIRD QUARTER, WILL
EXCEED $2 MILLION.

ADDITIONALLY, SUNAIR IS ON THE QUALIFIED SELECTION SHORT LIST TO DESIGN
HARDWARE, DEVELOP SOFTWARE AND DELIVER SYSTEMS FOR AN HF COASTAL STATION IN
NORTHERN EUROPE AND TWO MAJOR PROJECTS, WHICH HAVE BEEN IN DISCUSSION FOR
OVER THREE YEARS, IN THE PACIFIC RIM. OTHER SYSTEMS OPPORTUNITIES HAVE BEEN
IDENTIFIED IN AUSTRALIA AND TAIWAN WITH PLANS UNDERWAY TO DEMONSTRATE AND
QUALIFY OUR PRODUCTS AND CAPABILITIES IN COUNTRY IN THE COMING QUARTER.

WE WILL CONTINUE TO EXPLOIT THE COMPANY'S UNIQUE AND SPECIALIZED (HF)
ABILITIES AS A STRONG AND VALUABLE PRODUCT FOR LARGE DEFENSE SUPPLIERS.
THIS NEW VISION FOR SUNAIR OPENS OPPORTUNITY FOR EXPANSION AND INCREMENTAL
GROWTH WITH MINIMUM INVESTMENT OR BUDGET SHORTFALLS. THIS NEW APPROACH WILL
RESULT IN INCREASED SHAREHOLDER VALUE.




                                   -11-

<PAGE>




                         PART II   OTHER INFORMATION


5.    OTHER INFORMATION

      NONE

6.    EXHIBITS AND REPORTS ON FORM 8-K

      NONE


                                   -12-

<PAGE>





                                 SIGNATURES
                                 __________


PURSUANT TO THE REQUIREMENTS OF THE SECURITIES AND EXCHANGE ACT OF
1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS
BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.


                                           SUNAIR ELECTRONICS, INC.


      AUGUST 13, 2002                      /S/ JAMES E. LAURENT
DATE  _______________                      ___________________________
                                           JAMES E. LAURENT, PRINCIPAL
                                           EXECUTIVE OFFICER


      AUGUST 13, 2002                      /S/ SYNNOTT B. DURHAM
DATE  _______________                      ___________________________
                                           SYNNOTT B. DURHAM, PRINCIPAL
                                           ACCOUNTING OFFICER



                           CERTIFICATION PURSUANT TO
                            18 U.S.C. SECTION 1350,
                            AS ADOPTED PURSUANT TO
             SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


EACH OF JAMES E. LAURENT, THE PRINCIPAL EXECUTIVE OFFICER, AND SYNNOTT B.
DURHAM, THE PRINCIPAL FINANCIAL OFFICER, OF SUNAIR ELECTRONICS, INC., PURSUANT
TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-
OXLEY ACT OF 2002, DOES HEREBY CERTIFY THAT:

      (a)     THE COMPANY'S REPORT ON FORM 10-QSB FOR THE FISCAL QUARTER
              ENDED JUNE 30, 2002 FULLY COMPLIES WITH THE REQUIREMENTS OF
              SECTION 13(a) OF THE SECURITIES ACT OF 1934, AS AMENDED; AND,

      (b)     THE INFORMATION CONTAINED IN THE REPORT FAIRLY PRESENTS, IN ALL
              MATERIAL RESPECTS, THE FINANCIAL CONDITION AND RESULTS OF
              OPERATIONS OF THE COMPANY.

IN WITNESS WHEREOF, EACH OF THE UNDERSIGNED HAS EXECUTED THIS CERTIFICATE ON
THIS 13TH DAY OF AUGUST, 2002.

                                           /S/ JAMES E. LAURENT
                                           ______________________________
                                           JAMES E. LAURENT
                                           PRESIDENT AND CEO
                                           SUNAIR ELECTRONICS, INC.


                                           /S/ SYNNOTT B. DURHAM
                                           ______________________________
                                           SYNNOTT B. DURHAM
                                           TREASURER AND CFO
                                           SUNAIR ELECTRONICS, INC.



                                   -13-


<PAGE>