<Page 1>

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

                           				    FORM 10-Q

	      [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
   		      OF THE SECURITIES EXCHANGE ACT OF 1934
		         For the Quarterly Period Ended March 31, 1998

                                 					OR

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


                   			   Commission File Number 0-26634

 
	                       			 LeCROY CORPORATION
	       (Exact name of Registrant as specified in its charter)

       	      DELAWARE                                          13-2507777
      (State or other jurisdiction                          (I.R.S. Employer
    of Incorporation or organization)                      Identification No.)
  
      	      700 CHESTNUT RIDGE ROAD, CHESTNUT RIDGE, NEW YORK 10977
    (Address of principal executive office)                   (Zip Code)

	Registrant's telephone number, including area code:  (914) 425-2000


Indicate by check mark ("X") whether the Registrant:  (1) has filed all reports
to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding twelve 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 _______

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


      	       CLASS                         OUTSTANDING AT APRIL 23, 1998
 Common stock, par value $.01 share                    7,444,522











<Page 2>

                        				LeCROY CORPORATION

                        				      INDEX

 
                                                               									Page
PART I          FINANCIAL INFORMATION

Item 1.         Financial Statements:

              		Condensed Consolidated Balance Sheets.................    3
	              	Condensed Consolidated Statements of Income...........    4
	              	Condensed Consolidated Statements of Cash Flows.......    5
		              Notes to Condensed Consolidated Financial Statements..    6-9

Item 2.         Management's Discussion and Analysis of Financial
              		Condition and Results of Operations...................    10-12



PART I          OTHER INFORMATION.....................................    13

PART II         OTHER INFORMATION.....................................    13
   
              		Signatures............................................    13






   



   






















<Page 3>
                      				LeCROY CORPORATION
		               CONDENSED CONSOLIDATED BALANCE SHEETS
				                           (UNAUDITED)
<TABLE>
<CAPTION>
							                                                  March 31,    June 30, 
In thousands                                               1998         1997
			 ASSETS
<S>                                                      <C>          <C>
Current assets:
   Cash and cash equivalents...........................  $  8,542     $ 19,884 
   Accounts receivable.................................    31,627       25,661 
   Inventories:
       	Raw materials..................................     8,621        6,999 
	       Work in process................................     6,241        4,083 
	       Finished goods.................................     9,683        8,375 
							                                                    ------       ------
   Total inventories...................................    24,545       19,457 
   Other current assets................................     2,378        1,774 
							                                                    ------       ------
	       Total current assets...........................    67,092       66,776 
Property and equipment, at cost:
   Land and buildings..................................     6,488        5,894 
   Furniture, machinery and equipment..................    29,478       29,113 
							                                                    ------       ------
       	Total property, plant and equipment............    35,966       35,007 
   Less: Accumulated depreciation and amortization.....   (23,925)     (23,419)
							                                                    ------       ------
       	Property, plant and equipment, net.............    12,041       11,588 
Marketable securities..................................     5,790          -    
Other assets...........................................     5,806        1,025
							                                                    ------       ------
TOTAL ASSETS...........................................  $ 90,729     $ 79,389 
							                                                    ======       ======
	 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current debt........................................  $  1,128     $     84 
   Accounts payable....................................    10,218        7,022 
   Accrued warranty....................................     1,994        1,965 
   Accrued liabilities.................................     7,095        5,377 
   Accrued employee compensation and benefits..........     4,760        5,259 
   Income taxes payable................................     4,601        5,058 
							                                                    ------       ------
       	Total current liabilities......................    29,796       24,765 
Long-term liabilities..................................        26          300 
STOCKHOLDERS' EQUITY:
   Common stock........................................        75           73 
   Additional paid-in capital..........................    36,799       33,642 
   Treasury stock at cost..............................       -           (813)
   Foreign currency translation adjustment.............    (3,935)      (1,969)
   Net unrealized loss on securities available for sale      (700)         -    
   Retained earnings...................................    28,668       23,391 
							                                                    ------       ------
       	Total stockholders' equity.....................    60,907       54,324 
							                                                    ------       ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.............  $ 90,729     $ 79,389 
							                                                    ======       ======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<Page 4>
			                          	LeCROY CORPORATION
		               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
				                             (UNAUDITED)
<TABLE>
<CAPTION>
				                                  	Three months ended   Nine months ended
					                                       March 31,            March 31,
In thousands, except per share data       1998      1997       1998     1997
<S>                                     <C>       <C>        <C>       <C>
Revenues:
   Digital oscilloscopes and
      related products................  $23,458   $26,492    $78,735   $75,508 
   LAN/WAN test instruments...........    3,876     1,743     10,073     6,313 
   High energy physics products.......    1,856     1,802      4,641     5,399 
   Service and other..................    1,554     1,682      5,018     4,539 
				                                   	 ------    ------     ------    ------
      Total...........................   30,744    31,719     98,467    91,759 
Cost of sales.........................   11,717    13,096     40,553    39,176 
				                                   	 ------    ------     ------    ------
   Gross profit.......................   19,027    18,623     57,914    52,583 
Operating expenses:
   Selling, general and
      administrative..................   11,090    10,930     33,070    30,803 
   Research and development...........    4,496     3,682     13,343    11,592 
   Non-recurring charges..............      -       3,857      4,188     3,857
                                   					 ------    ------     ------    ------
       Total..........................   15,586    18,469     50,601    46,252 

Operating income......................    3,441       154      7,313     6,331 
Other (income) expenses, net..........     (287)       19       (167)     (277)
                                   					 ------    ------     ------    ------
Income before income taxes............    3,728       135      7,480     6,608
Provision for income taxes............    1,118        47      2,203     2,226 
                                   					 ------    ------     ------    ------
Net income............................  $ 2,610   $    88    $ 5,277   $ 4,382 
                                   					 ======    ======     ======    ======

Income per common share:

   Basic..............................  $  0.35   $  0.01    $  0.72   $  0.73 
                                   					 ======    ======     ======    ======
   Diluted............................  $  0.33   $  0.01    $  0.66   $  0.59 
					                                    ======    ======     ======    ======

Weighted average number of common shares:

   Basic..............................    7,429     6,173      7,340     6,031 
                                   					 ======    ======     ======    ======
   Diluted............................    7,904     7,557      8,055     7,438 
					                                    ======    ======     ======    ======
</TABLE>

See accompanying notes to condensed consolidated financial statements.






<Page 5>
                          				LeCROY CORPORATION
		          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
				                             (UNAUDITED)
<TABLE>
<CAPTION>
							                                                   Nine Months Ended
						                                                       		March 31, 
In thousands                                               1998         1997 
<S>                                                        <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income..........................................    $  5,277   $ 4,382 
   Adjustments for noncash items included in
   operating activities:
      Depreciation and amortization....................       2,789     2,342 
      Deferred income taxes............................          23       -    
      Purchased incomplete technology..................       1,600       -    
      Non-recurring merger costs.......................       2,588       -    
      Restructuring provision..........................         -      (3,857) 
      Extraordinary charge and other...................         -          30  
   Change in operating asset and liability components:
      Accounts receivable..............................      (7,756)   (6,793)
      Inventories......................................      (5,874)   (3,066)
      Prepaid expenses and other assets................        (151)   (1,257)
      Accounts payable and accrued liabilities.........       4,737        (5) 
      Accrued employee compensation and benefits.......        (343)      783  
      Income taxes.....................................        (358)    1,579 
                                                 							      -----     -----
Net cash provided by operating activities..............       2,532     1,852
							                                                       -----     -----
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment..................      (3,275)   (3,518)
   Business acquisition, net of acquired cash..........        (395)      -    
   Investment in equity securities.....................      (7,054)      -    
   Purchase of intangible assets.......................      (4,700)      -    
   Due from officers...................................         -          35 
   Proceeds from the disposal of property and equipment          41        38 
							                                                      ------     -----
Net cash used in investing activities..................     (15,383)   (3,445)
							                                                      ------     -----
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net change in short term debt.......................       1,044        (1)
   Repayment of debt and capitalized leases............         (68)   (4,926)
   Public sale of common stock.........................         -       6,870 
   Proceeds from exercise of stock options and stock
   purchases...........................................       2,505     1,964  
							                                                      ------    ------
Net cash provided by financing activities..............       3,481     3,907 
							                                                      ------    ------
Effect of exchange rates on cash.......................      (1,972)   (1,983)
							                                                      ------    ------
   Increase (decrease) in cash and cash equivalents....     (11,342)      331 
   Cash and cash equivalents at beginning of the year..      19,884    10,364 
							                                                      ------    ------
   Cash and cash equivalents at end of the period......    $  8,542   $10,695 
							                                                      ======    ======
</TABLE>
See accompanying notes to condensed consolidated financial statements.


<Page 6>
                         				LeCROY CORPORATION
		         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
				                            (Unaudited)
Basis of Presentation

     In the opinion of management, the accompanying unaudited interim
condensed consolidated financial statements reflect all adjustments, of a
normal and recurring nature, necessary to present fairly the results for the
interim periods presented.

     Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The year-end balance sheet data was
derived from LeCroy audited financial statements and Digitech unaudited
financial statements, but does not include all disclosures required by
generally accepted accounting principles. It is suggested that these condensed
statements be read in conjunction with the Corporation's most recent Form 10-K
and Annual Report as of June 30, 1997.

     This Form 10-Q contains forward-looking statements which involve risks and
uncertainties. The Company's actual results may differ significantly from the
results discussed in the forward-looking statements. Factors that might cause
the Company's actual results or activities to differ materially from these
forward-looking statements include but are not limited to: the effect of
economic conditions, including the effect on purchases by the Company's
customers; competitive factors, including pricing pressures, technological
developments and products offered by customers; changes in product sales and
mix; the Company's ability to deliver a timely flow of competitive new products
and market acceptance of these products; inventory risks due to changes in
market demand or the Company's business strategies; currency fluctuations; the
effect of the Company's accounting policies; and other risk factors listed
from time to time in the Company's reports filed with the Securities and
Exchange Commission and press releases.  

     Results for the interim period are not necessarily indicative of the
results that may be expected for the entire year.

Acquisitions 

Pooling of Interests

     In the second quarter of fiscal 1998 LeCroy acquired all of the common
stock of Digitech Industries Inc. in exchange for 454,148 shares of the
Company's common stock. Digitech Industries Inc., located in Danbury,
Connecticut, is involved in the design and development of a wide variety of
test equipment for the data communication and telecommunication industries.
Transaction costs and one time charges resulting from the merger of $2.6
million ($1.8 million net of tax) or $(0.23) per share, net of tax, include
provision for environmental cleanup, expenses for investment banker and
professional fees, and assets associated with duplicate product lines.

     The acquisition referred to above has been accounted for by the
pooling-of-interests method and, accordingly, the accompanying financial
statements have been restated retroactively to include the financial position
and results of operations of Digitech. The accompanying table entitled
Restatement of Prior Years' Results to Account for Current-Year Business
Combinations reports the prior years' contribution of the current-year
acquisition.

<Page 7>
                       				LeCROY CORPORATION
		        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
				                          (Unaudited)

Restatement of Prior Years' Results to Account for Current-Year Business
Combination

     The following table reflects the results of the current-year acquisition
accounted for by the pooling-of-interests method.
<TABLE>
<CAPTION>
				      Three months ended     Nine months ended
					   March 31,             March 31,
In thousands, except per share data     1998      1997         1998     1997
<S>                                   <C>        <C>         <C>       <C>
Revenues:
   LeCroy Corporation..............   $26,763    $29,895     $88,055   $85,054 
   Digitech Industries.............     3,981      1,824      10,412     6,705 
                            				       ------     ------      ------    ------
      Combined.....................    30,744     31,719      98,467    91,759 
				                                   ======     ======      ======    ======
Net Income:
   LeCroy Corporation..............   $   640    $    15     $ 3,306   $ 3,737 
   Digitech Industries.............     1,970         73       1,971       645 
				                                   ------     ------      ------    ------
      Combined.....................     2,610         88       5,277     4,382 
				                                   ======     ======      ======    ======
Earnings Per Share:
Basic:
   LeCroy Corporation..............   $  0.09    $  0.00     $  0.45   $  0.62 
   Digitech Industries.............      0.26       0.01        0.27      0.11 
				                                   ------     ------      ------    ------
      Combined.....................      0.35       0.01        0.72      0.73 
				                                   ======     ======      ======    ======
Diluted:
   LeCroy Corporation..............   $  0.08    $  0.00     $  0.41   $  0.50 
   Digitech Industries.............      0.25       0.01        0.25      0.09 
                            				       ------     ------      ------    ------
      Combined.....................      0.33       0.01        0.66      0.59 
				                                   ======     ======      ======    ======
</TABLE>

Purchase

     On October 20, 1997 the Company acquired all of the outstanding shares of
Preamble Instruments, Inc. of Beaverton, Oregon, a manufacturer of stand-alone
differential amplifiers and probes, for approximately $1.8 million, of which
approximately $411,000 was cash and 35,181 shares of the Company's common
stock at $39.99 per share. Incident to the acquisition was the purchase of
incomplete technology activities which resulted in a one-time pretax charge of
$1.6 million or $(0.14) per share net of tax. The purchased incomplete
technology that had not reached technological feasibility and which had no
alternative future use was valued using a risk-adjusted cash flow model.
Acquired complete technology of approximately $220,000 is being amortized over
five years.
 



<Page 8>
                      				LeCROY CORPORATION
	        	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       				   (Unaudited)

Available for Sale Securities

      The following is a summary of the available for sale securities as of
March 31, 1998:
<TABLE>
<CAPTION>
					                                         Gross        Gross     Estimated
                                  					     Unrealized   Unrealized    Fair
Amounts in thousands                Cost      Gains        Losses      Value
<S>                                 <C>     <C>          <C>         <C>
March 31, 1998:
   Equity investments...........    $7,054       -         (1,264)     $5,790 
				                                 -----     -----        -----       -----
      Total available for sale
      securities................    $7,054       -         (1,264)     $5,790 
				                                 =====     =====        =====       =====
</TABLE>
     Unrealized gains/losses are reported net of tax and foreign exchange
effect in the equity section of the Company's balance sheet in accordance
with SFAS No. 115.


Shares used in the calculation of Net Income per Share
<TABLE>
<CAPTION>
				                                 Three months ended     Nine months ended
					                                     March 31,             March 31,
                            				       1998       1997        1998       1997
<S>                                   <C>         <C>         <C>        <C>
Weighted average shares
   outstanding - basic.............   7,429       6,173       7,340      6,031 
Dilutive effect of stock options
   after application of treasury
   stock method....................     475       1,384         715      1,407 
				                                  -----       -----       -----      -----
Weighted average shares
   outstanding - diluted...........   7,904       7,557       8,055      7,438 
				                                  =====       =====       =====      =====
</TABLE>

New Pronouncements

     The Financial Accounting Standards Board issued Statement No. 128,
"Earnings per Share" (SFAS No. 128), which modifies the way in which earnings
per share (EPS) is calculated and disclosed. The Company adopted this standard
during the interim period ended December 31, 1997, disclosing basic and
diluted EPS and restated all prior period EPS data presented. 








<Page 9>
                       				LeCROY CORPORATION
		        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                      				   (Unaudited)

     In June 1997, the Financial Accounting Standards Board issued
SFAS No. 130, "Reporting Comprehensive Income", which is effective for the
Company beginning July 1, 1998. This statement establishes standards for
reporting and display of comprehensive income and its components in a full
set of general-purpose financial statements. The Company believes that the
information to be included in deriving comprehensive income, although not
currently presented in a separate financial statement, is disclosed as a part
of these basic financial statements.

     In June 1997, the Financial Accounting Standards Board issued
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information", which is effective for the Company beginning July 1, 1998. This
statement establishes standards for the way that public business enterprises
report information about operating segments in annual financial statements and
requires that these enterprises report selected information about operating
segments in interim financial reports issued to shareholders. This statement
supersedes SFAS No. 14 and amends SFAS No. 94. Management has not completed
its review of SFAS No. 131, but does not anticipate that the adoption of this
pronouncement will have a significant effect on the Company's reported
segments.



































<Page 10>
	                          			LeCROY CORPORATION
 
	            	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
		                  	CONDITION AND RESULTS OF OPERATIONS
	
Results of Operations

     Consolidated revenues decreased approximately 3% for the current quarter
but increased approximately 7% for the nine months ended March 31, 1998,
respectively, from the comparable prior year periods.  The decrease for the
third quarter is primarily attributable to reduced digital oscilloscope sales
to the disk drive industry, the result of lower purchasing patterns from the
Japanese and Pacific Rim markets coupled with reduced sales to the disk drive
industry. The increase for the nine month period is primarily the result of
an increase in average selling prices of higher margin digital oscilloscopes
and an increase in revenues related to LAN/WAN test instruments. Consolidated
revenues were $30.7 million for the third quarter. Year-to-date revenues were
$98.5 million, which represents record nine month revenues for the Company.
This increase in revenues was hampered by approximately $1.1 million and $3.7
million for the current quarter and nine months ended March 31, 1998,
respectively, due to the strengthening of the United States dollar versus the
Swiss franc, Japanese yen, French franc and the German deutschemark as
compared to the exchange rates prevailing in the same periods of the prior
fiscal year.

     Digital oscilloscopes and related product revenues decreased 11% to $23.5
million in the third quarter but increased approximately 4% to $78.7 million
for the nine months ended March 31, 1998 as compared to the comparable prior
year periods. For the third quarter, the decrease is primarily attributable to
the aforementioned softness in the Japanese and Pacific Rim markets coupled
with softness in the disk drive industry. For the nine months, this increase
in revenues was primarily attributable to an increase in sales of the
higher-end products in the Company's LC family of digital oscilloscopes.
Geographically, in the third quarter ended March 31, 1998, revenues decreased
in the United States as well as Japan and the rest of Asia, but were partially
offset by revenue increases in Europe as compared to the comparable prior year
periods. For the nine months ended March 31, 1998, the increase in revenues
in the United States and the rest of the world other than Europe (principally
Japan and the rest of Asia) was partially offset by a decline in revenues in
Europe.

     While the Company experienced revenue growth during the nine month period,
the Company faces upcoming challenges, specifically in the Japanese and Pacific
Rim markets. Additionally, the cyclical slowdown in the disk drive industry
will put increased pressure on our domestic sales. Although the Company's
visibility regarding the duration of these factors is limited, it is possible t
hat the aforementioned factors could affect the Company's performance for the
next several quarters. As a result, the company plans to take actions in the
fourth quarter of fiscal 1998 to bring costs in line with revenues. On May 4,
1998, the Company announced a reduction in workforce as the first step of its
cost-reduction program.

     Revenues from LAN/WAN test instruments, acquired in the Digitech
acquisition, increased to $3.9 million in the third quarter and $10.1 million
for the nine months ended March 31, 1998 from $1.7 million and $6.3 million,
respectively, in the comparable prior year periods. The increase is primarily
the result of license fee revenues of $3.0 million received in the third
quarter of the current year.

<Page 11>
	                           			LeCROY CORPORATION
 
	           	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
		                CONDITION AND RESULTS OF OPERATIONS (Cont.)

     Revenues from sales of HEP products increased 3% in the third quarter but
declined 14% for the nine months ended March 31, 1998 as compared to the
comparable prior year periods. The Company in recent years has experienced a
continuing decrease in HEP revenues due to a variety of factors, including a
decline in United States government funding for defense and the phase-out of
the Company's digitizer products. The Company believes that revenues from sales
of HEP products, which represented approximately 6% of total revenues for the
third quarter and 5% for the nine months ended March 31, 1998 are likely to
continue to represent a declining portion of its total revenues in the future. 

     Gross profit for the current quarter and nine months ended March 31, 1998
was 61.9% and 58.8% of revenues, respectively, compared to 58.7% and 57.3% for
each respective prior year period. This growth was due primarily to increased
revenues from higher sales volume of certain higher margin LC series digital
oscilloscopes and license fees for digital oscilloscope solutions and LAN/WAN
license fee revenues.
	
     Selling, general and administrative expenses increased to $11.1 million in
the third quarter and $33.1 million for the nine months ended March 31, 1998
from $10.9 million and $30.8 million, respectively, in the comparable prior
year periods. As a percentage of total revenues, selling, general and
administrative expenses were 36.1% in the third quarter and 33.6% in the nine
months ended March 31, 1998 compared to 34.5% and 33.6% in the comparable prior
year periods. These expenses increased in dollars as the Company incurred
additional sales commissions due to higher sales volume and expanded its
management and support staff.

     Research and development expenses increased to $4.5 million in the current
quarter and $13.3 million in the nine months ended March 31, 1998 from $3.7
million and $11.6 million in the comparable prior year periods. The higher
dollar level of research and development expenses reflected an increase in
connection with new digital oscilloscopes and continued development of a LAN
network monitor. As a percentage of total revenues, research and development
expenses were 14.6% for the third quarter and 13.6% for the nine months ended
March 31, 1998 compared to 11.6% and 12.6% for the comparable prior year
periods.

     Operating income, excluding the impact of the nonrecurring charges,
decreased 14% to $3.4 million in the third quarter but increased 13% to $11.5
million for the nine months ended March 31, 1998 as compared to the comparable
prior year periods. As a percentage of total revenues, operating income,
excluding the impact of the nonrecurring charges, was 11.2% in the third
quarter and 11.7% for the nine months ended March 31, 1998 as compared to 12.6%
and 11.1% in the comparable prior year periods. The decrease in operating
income, excluding the impact of the non-recurring charges, for the third
quarter was due primarily to the higher levels of research and development
expenses listed above. The increase in operating income, excluding the impact
of the non-recurring charges, for the nine months ended March 31, 1998 was
due primarily to increased revenues in the current year coupled with improved
operating efficiencies and other factors listed above.




<Page 12>
                           				LeCROY CORPORATION

          		MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
		             CONDITION AND RESULTS OF OPERATIONS (Cont.)

     Net interest income and financing charges, included in other (income)
expenses, was $501,000 for the nine months ended March 31, 1998 compared to
interest expense of $401,000 for the nine months ended March 31, 1997. The
improvement in the current year is due primarily to reduced levels of debt paid
down from funds received in the third quarter of fiscal 1997 from the Company's
public offering coupled with favorable operating cash flow. Other (income)
expenses, net in the nine month period ended March 31, 1998 included currency
exchange losses of approximately $334,000 compared to gains of approximately
$678,000 in the comparable prior year period.

     The Company's effective income tax rate for the nine months ended March
31, 1998 was 30.0%. Currently, the Company's Swiss subsidiary operates under
a tax agreement with the Canton of Geneva pursuant to which the effective tax
rate on income with respect to such subsidiary is approximately 17%. This
agreement is in effect through the fiscal year ended June 30, 2000. 

     Excluding the impact of the nonrecurring charges, income increased to
$2,610,000 in the third quarter and $8,209,000 for the nine months ended March
31, 1998 compared to $2,595,000 and $6,889,000 for the comparable prior year
periods. As a percentage of total revenues, income excluding the impact of the
nonrecurring charges was 8.5% in the third quarter and 8.3% for the nine
months ended March 31, 1998 compared to 8.2% and 7.5% in the comparable prior
year periods. The improvement in fiscal 1998 was due primarily to increased
revenues, improved gross margins, and lower interest costs.

Liquidity and Capital Resources

     The financial condition of LeCroy is sound as working capital, including
$8.5 million in cash and cash equivalents, was $37.3 million at March 31, 1998
compared to $42.1 million at June 30, 1997. The working capital ratio is
currently 2.3 to 1.
	
     Cash flows generated from operating activities for the first nine months
of fiscal 1998 increased in comparison with the prior year due to increases
in operating earnings before noncash nonrecurring charges in the current year
coupled with improved asset management.

     The Company's cash on hand, together with amounts available under its
multicurrency revolving credit agreement and internally generated cash flow
will be sufficient to fund working capital and capital expenditure
requirements for at least the next twelve months.













<Page 13>
                          				 LeCROY CORPORATION

       			      PART I. OTHER INFORMATION

Item 6.(a)      Exhibits

Exhibit 27      Financial Data Schedule.


       			      PART II. OTHER INFORMATION

Item 6.(b)      Reports on Form 8-K

              		No current reports on Form 8-K were filed during the quarter
	              	ended March 31, 1998.



                        				     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.

		   
					  LECROY CORPORATION



Date: May 7, 1998                         By:      /S/ JOHN C. MAAG   
                                          						       John C. Maag      
						                                                 Vice President-Finance,
						                                                 Chief Financial Officer,
						                                                 Secretary and Treasurer