<PAGE>

               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:     December 31, 1996 or

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 0R 15(d) OF THE SECURITIES 
        EXCHANGE ACT OF 1934

For the transition period from _____________ to ____________

Commission File Number:          0-27250

                     AML COMMUNICATIONS, INC.
     (Exact name of registrant's specified in its charter)


               Delaware                                77-0130894
      ------------------------------         ---------------------------------
     (State or other jurisdiction of         (IRS Employer Identification No.)
     incorporation or organization)

           1000 Avenida Acaso
         Camarillo, California                             93012
 --------------------------------------               --------------
(Address of principal executive offices)                (Zip Code)

                           (805) 388-1345
           -------------------------------------------------
          (Registrant's telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                    Yes    X     No  
                         ----         ----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.

Common Stock Outstanding as of January 31, 1997:   6,036,453

Number of pages in this Form 10-Q    13
                                     --


<PAGE>                               1


                   AML COMMUNICATIONS, INC.

                          INDEX

<TABLE>
<CAPTION>


<S>       <C>                                                P
PART I    FINANCIAL INFORMATION                              <

Item 1.   Financial Statements (Unaudited)

          Statements of Income for the three and nine month periods 
          ended December 31, 1996 and December 31, 1995

          Balance Sheets at December 31 and March 31, 1996

          Statements of Cash Flows for the nine month periods ended
          December 31, 1996 and December 31, 1995

          Notes to the Financial Statements

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

PART II   OTHER INFORMATION     

Item 6.   Exhibits and Reports on Form 8-K

          SIGNATURES
</TABLE>

<PAGE>                         2


                   PART 1 - FINANCIAL INFORMATION

ITEM 1.               FINANCIAL STATEMENTS


                    AML COMMUNICATIONS, INC.
                      STATEMENTS OF INCOME
                          (UNAUDITED)

<TABLE>
<CAPTION>
                             Three Months Ended        Nine Months Ended
                                December 31,             December 31,         
                            1996           1995         1996         1995     
                          ----------     ----------   -----------  ----------
<S>                      <C>             <C>         <C>          <C>
Net sales                $4,073,000     $1,803,000   $11,631,000  $4,380,000
Cost of goods sold        1,890,000        842,000     5,396,000   1,963,000
                         ----------     ----------   -----------  ----------
    Gross profit          2,183,000        961,000     6,235,000   2,417,000
                         ----------     ----------   -----------  ----------
Operating expenses:    
  Selling, general and 
    administrative          657,000        219,000     1,977,000     585,000 
  Research and development  425,000        236,000     1,124,000     563,000
                         ----------     ----------   -----------  ----------
                          1,082,000        455,000     3,101,000   1,148,000
                         ----------     ----------   -----------  ----------
Operating income          1,101,000        506,000     3,134,000   1,269,000
  Interest expense 
    (income), net           (57,000)        11,000      (158,000)     43,000
Income before provision 
  for income taxes        1,158,000        495,000     3,292,000   1,226,000
Provision for income taxes  429,000        195,000     1,218,000     487,000
                         ----------     ----------   -----------  ----------
Net income               $  729,000     $  300,000   $ 2,074,000  $  739,000
                         ==========     ==========   ===========  ==========
Earnings per common share      $.11           $.06          $.32        $.16
                                ===            ===           ===         ===
Weighted average number of
  shares of common stock 
  outstanding             6,502,000      4,881,000     6,506,000   4,738,000
                         ==========     ==========   ===========  ==========
</TABLE>

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

<PAGE>                                3

                            AML COMMUNICATIONS, INC.
                               BALANCE SHEETS 
<TABLE>
<CAPTION>
                                          December 31,      March 31,
                                             1996             1996          
                                         -------------     ----------
 <S>                                     <C>               <C>       
                                         (UNAUDITED)

ASSETS
-------------
Current Assets:
  Cash                                    $ 4,624,000     $ 6,312,000
  Marketable securities                     2,011,000             ---
  Accounts receivable, net of allowance 
    for doubtful accounts of $145,000 
    and $102,000, as of December 31 and 
    March 31, 1996, respectively            3,400,000       1,549,000
  Inventories                               1,724,000       1,304,000
  Facilities held for resale                      ---       1,300,000
  Other current assets                         44,000          41,000  
                                          -----------     -----------
       Total Current Assets                11,803,000      10,506,000  
                                          -----------     -----------
Property and Equipment, at cost:
  Machinery and equipment                   2,064,000       1,141,000      
  Furniture & fixtures                        133,000           1,000
  Leasehold improvements                      513,000         220,000
                                          -----------     -----------
                                            2,710,000       1,362,000
  Less-Accumulated depreciation and
    amortization                            (769,000)        (413,000)
                                          -----------     -----------
                                            1,941,000         949,000 
                                          -----------     -----------
Deferred Taxes                                271,000         107,000
                                          -----------     -----------
  Other Assets                                180,000          83,000
                                          -----------     -----------
                                          $14,195,000     $11,645,000
                                          ===========     ===========
LIABILITIES AND STOCKHOLDERS' EQUITY 
--------------------------------------
Current Liabilities:
  Current portion of capital lease
    obligations                           $    39,000     $   118,000
  Accounts payable                            637,000         600,000
  Accrued compensation and benefits           584,000         275,000  
  Other accrued expenses                      112,000         173,000
  Income taxes payable                        311,000         710,000  
                                          -----------     -----------  
       Total Current Liabilities            1,683,000       1,876,000  
                                          -----------     -----------
Capital Lease Obligations, 
  net of current portion                       72,000         360,000
                                          -----------     -----------

Stockholders' Equity:
  Preferred stock, $.01 par value:
     Authorized--1,000,000 shares, no
         shares issued or outstanding              --              --
  Common stock, $.01 par value:
     Authorized--15,000,000 shares 
         authorized--5,940,874 and 
         5,641,450 shares issued and 
         outstanding as of December 31 
         and March 31, 1996, respectively      59,000          57,000
  Capital in excess of par value            8,805,000       7,850,000
  Retained earnings                         3,576,000       1,502,000
                                          -----------     -----------
                                           12,440,000       9,409,000
                                          -----------     -----------
                                          $14,195,000     $11,645,000
                                          ===========     =========== 

</TABLE>       
  The accompanying notes are an integral part of these financial statements.

<PAGE>                         4


                    AML COMMUNICATIONS, INC.
                    STATEMENTS OF CASH FLOWS
                          (UNAUDITED)  
<TABLE>
<CAPTION>
                                                NINE MONTHS ENDED
                                         ----------------------------
                                         DECEMBER 31,    DECEMBER 31,
                                             1996            1995
                                         ------------    ------------       
<S>                                      <C>             <C>
Cash Flows from Operating Activities:
  Net income                              $ 2,074,000      $  739,000
  Adjustments to reconcile net income
    to net cash provided by operating
    activities:                
       Depreciation and amortization          356,000          79,000
       Provision for losses on accounts
         receivable                            43,000          48,000
       Changes in assets and liabilities:
           Decrease (increase) in:
               Accounts receivable         (1,894,000)       (730,000)
               Inventories                   (420,000)       (462,000)
               Prepaid expenses                (3,000)        (31,000)
               Deferred tax asset            (164,000)         15,000
               Other assets                   (97,000)             --
           Increase (decrease) in:
               Accounts payable                37,000         455,000
               Accrued expenses               248,000          12,000
               Income taxes payable           301,000         418,000
                                            ---------         -------
               Net cash provided by
                 operating activities         481,000         543,000
                                            ---------         -------
Cash Flows from Investing Activities:
  Purchase of marketable securities        (2,011,000)             --
  Proceeds from disposition of facilities
    held for resale                         1,300,000              --
  Purchases of property and equipment      (1,348,000)        (40,000)
                                            ---------          ------
               Net cash used in            
               investing activities        (2,059,000)        (40,000)
                                            ---------          ------
Cash Flows from Financing Activities:
  Sale of common stock                             --       6,671,000
  Exercise of stock options                   257,000              --
  Principal payments on capital
    lease obligations                        (367,000)       (478,000)
                                            ---------        --------
        Net cash provided by (used in) 
          financing activities               (110,000)      6,193,000
                                            ---------       ---------
Net increase (decrease) in cash             (1,688,000)     6,696,000
Cash, beginning of period                    6,312,000        257,000
                                          ------------     ----------
Cash, end of period                       $  4,624,000    $ 6,953,000
                                          ============    ===========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                              $     20,000    $   114,000
                                          ============    =========== 
    Income taxes                          $  1,074,000    $   256,000
                                          ============    ===========
  Tax benefit related to employee         $    700,000    $        --
    stock options                         ============    ===========

</TABLE>

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

<PAGE>                         5

                     AML COMMUNICATIONS, INC.
                  NOTES TO FINANCIAL STATEMENTS
                         DECEMBER 31, 1996
                           (UNAUDITED) 

1.     BASIS OF PRESENTATION -

     The accompanying unaudited financial statements have been prepared in 
conformity with generally accepted accounting principles.  However, certain 
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been 
omitted or condensed pursuant to the rules and regulations of the Securities 
and Exchange Commission ("SEC"). In the opinion of management all adjustments 
(consisting of normal recurring adjustments) necessary for a fair presentation 
have been included.  The results of operations and cash flows for the three and
nine month periods presented are not necessarily indicative of the results of 
operations for a full year.  These financial statements should be read in 
conjunction with the Company's March 31, 1996 audited financial statements and 
notes thereto included in the Company's Form 10-KSB.

     The Company declared a three-for-two stock split, effected by means of
a 50% share dividend, paid to owners of record as of the close of trading 
June 5, 1996, payable on June 28, 1996.  All share and per share information 
in the accompanying financial statements have been adjusted to give retroactive
effect to the stock split.

EARNINGS PER SHARE - 

     Earnings per share is based upon the weighted average number of common 
shares outstanding plus the dilutive effect of common stock equivalents. For
the periods ended December 31, 1996 and 1995, per share information was 
computed pursuant to the rules of the SEC, which require that common stock 
issued by the Company during the twelve months immediately preceding the 
Company's initial public offering plus the number of common shares issuable
pursuant to the grant of options issued during the same period, be included in
the calculation of shares outstanding using the treasury stock method from the
beginning of the period presented.

Primary and fully diluted earnings (loss) per share were the same for all 
periods presented.

<PAGE>                             6

INVENTORIES -

     Inventories include costs of material, labor and manufacturing overhead 
and are stated at the lower of cost (first-in, first-out) or market and consist 
of the following:

<TABLE>
<CAPTION>
                         December 31,     March 31,
                             1996            1996
                         ------------     ----------
     <S>                 <C>              <C>
     Raw materials         $1,355,000     $  792,000
     Work - in - process      316,000        512,000
     Finished goods            53,000             --
                         ------------     ----------
                           $1,724,000     $1,304,000
                         ============     ==========

</TABLE>

MARKETABLE SECURITIES -

     Marketable securities are interest bearing investments with maturities 
of less than one year but greater than three months when purchased. These 
securities are readily convertible to cash and are stated at cost, which 
approximates market value.

2.   FACILITY HELD FOR RESALE - 

     The $1.3 million facility held for resale relates to the purchase of 
the Company's new manufacturing and administrative facility on 
February 25, 1996.  The second phase of the transaction, which was consummated
on May 1, 1996, after the Company completed the renovations required to 
accommodate the intended use of the facility, involved the sale and leaseback 
of the building.  The terms of sale included payment by the purchaser of the 
full $1.3 million original purchase price and the Company agreeing to a seven 
year lease with a five year option to extend.

3.   LINE OF CREDIT -

     In August 1996, the Company renegotiated its revolving bank line of 
credit.  The new agreement is comprised of two separate credit facilities.  
The initial facility is a $1,250,000 revolving line of credit, which bears 
interest at the bank's reference rate plus .75%. The second facility is a 
$500,000 non-revolving line of credit with term repayment options which may 
be used to finance up to 80% of the purchase price of equipment used in the 
Company's business.  Repayment of borrowings under this facility are in 47 
equal monthly installments starting on October 1, 1997, with interest at 
the bank's reference rate plus 1.00%. Both facilities are secured by 
substantially all of the Company's assets and expire on September 1, 1997. 
As of December 31, 1996, there were no borrowings outstanding under either 
facility.

<PAGE>                         7

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS.

     This filing contains forward-looking statements which involve risks and 
uncertainties.  The Company's actual future may differ significantly from the
results discussed in the forward-looking statements.  Factors that might cause
a difference include, but are not limited to, product demand and the rate of 
market acceptance, the effect of economic conditions, the impact of competitive
products and pricing, delays in product development, capacity and supply 
constraints or difficulties, general business and economic conditions, and 
other risks detailed in the Company's Securities and Exchange Commission 
filings.

RESULTS OF OPERATIONS
------------------------

THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995

NET SALES.  Net sales for the three months ended December 31, 1996 were 
$4.1 million, compared to net sales of $1.8 million for the corresponding 
period in 1995, an increase of approximately $2.3 million, or 125.9%.  The 
increase was due primarily to Microcell product line and wireless telephony 
sales of approximately $3.3 million, or 79.8% of net sales for the quarter
ended December 31, 1996 compared to approximately $1.0 million, or  56.0% 
of net sales for the quarter ended December 31, 1995.  The Microcell 140, 
approved for sale by the Federal Communications Commission in November, 1996, 
contributed approximately $256,000, or 6.3% to net sales for the quarter ended 
December 31, 1996.  Additionally, the Company realized new PCS product line 
sales of approximately $378,000, or 9.3% of net sales for the quarter ended
December 31, 1996. Sales of the Company's PCS products and products being 
developed for the paging markets will represent an increasing percentage of 
net sales in the future if the Company's marketing strategy is successful.

GROSS PROFIT.  Gross profit for the three months ended December 31, 1996 was 
$2.2 million, or 53.6% of net sales, compared to $1.0 million, or 53.3% for the
corresponding period in 1995.  Unanticipated overtime labor and other costs 
attributable to new product production and expedited orders contributed to lower
than expected gross profit for the quarter ended December 31, 1996. The Company
believes that average selling prices and gross margins for its products are 
likely to decline as cellular operators face pressure to reduce costs and as 
competition intensifies among suppliers of equipment to the cellular operators.
If competition or other market factors dictate a shift in the Company's pricing
or product mix, gross profit as a percentage of net sales may not be as
favorable in the future.

SELLING, GENERAL AND ADMINISTRATIVE COSTS.  Selling, general and 
administrative costs for the three months ended December 31, 1996 were $657,000,
or 16.1% of net sales, compared to $219,000, or 12.1% for the corresponding 
period in 1995.  Both the absolute dollar and percentage increases related 
principally to additional marketing and administrative headcount, its related 
expenses, and expanded information systems necessary to support a higher 
sales volume.

RESEARCH AND DEVELOPMENT COSTS.  Research and development costs for the three
months ended December 31, 1996 were $425,000, or 10.4% of net sales, compared 
to $236,000, or 13.1% of net sales for the corresponding period in 1995. The 
absolute dollar increase was due primarily to the employment of additional 
technical staff required to design and develop new products for the cellular, 
PCS and paging communications markets.

PROVISION FOR INCOME TAXES.  For the three months ended December 31, 1996, the 
Company's provision for income taxes was $429,000, an effective tax rate of 
approximately 37%, compared to $195,000, an effective tax rate of approximately 
39% for the corresponding period in 1995.  The difference between the rate used
and the statutory rate of approximately 40% is due to research and development 
tax credits available to the Company which reduce taxes payable, and tax free 
income generated from certain investments.

NET INCOME.  For the reasons set forth above, the Company generated a net income
for the three months ended December 31, 1996 of $729,000, or 17.9% of net 
sales, compared to a net income of $300,000, or 16.6% of net sales for the 
comparable period in 1995.

<PAGE>                         8


NINE MONTHS ENDED DECEMBER 31, 1996 AND 1995

NET SALES.  Net sales for the nine months ended December 31, 1996 were $11.6 
million, compared to net sales of $4.4 million for the corresponding period in
1995, an increase of approximately  $7.2 million, or 165.5%.  The increase
was due primarily to Microcell product line and wireless telephony sales of
approximately $9.9 million, or 84.7% of net sales for the nine months ended
December 31, 1996, compared to approximately $2.1 million, or  48.1% of sales
for the nine months December 31, 1995.  Additionally, although sales of PCS
products represented only 3.3% of net sales for the nine months ended 
December 31, 1996, the Company anticipates net sales of these and other new 
products to represent an increasing percentage of net sales in the future.

GROSS PROFIT.  Gross profit for the nine months ended December 31, 1996 was
$6.2 million, or 53.6% of net sales, compared to $2.4 million, or 55.2% for
the corresponding period in 1995.  The higher gross margin for the nine 
months ended December 31, 1995 was due primarily to lower than anticipated 
costs incurred with a contract which generated approximately 21.6% of the 
nine months' net sales. The Company believes that average selling prices and
gross margins for its products are likely to decline as cellular operators 
face pressure to reduce costs and as competition intensifies among suppliers
of equipment to the cellular operators.  If competition or other market 
factors dictate a shift in the Company's pricing or product mix, gross profit
as a percentage of net sales may not be as favorable in the future.

SELLING, GENERAL AND ADMINISTRATIVE COSTS.  Selling, general and 
administrative costs for the nine months ended December 31, 1996 were $2.0 
million, or 17.0% of net sales, compared to $585,000, or 13.4% for the 
corresponding period in 1995.  Both the absolute dollar and percentage
variances related principally to additional sales commissions, marketing and 
administrative headcount and its related expenses, and expanded information 
systems necessary to support a higher sales volume.  The Company believes 
further investment in marketing and administration will be necessary to 
accommodate continued growth.

RESEARCH AND DEVELOPMENT COSTS.  Research and development costs for the nine
months ended December 31, 1996 were $1.1 million, or 9.7% of net sales, 
compared to $563,000, or 12.9% of net sales for the corresponding period in
1995.  The absolute dollar increase was due basically to the employment of 
additional technical staff required to design and develop new products for 
the cellular, PCS and paging communications markets.  The Company's research
and development expenditures for the nine months ended December 31, 1996 
resulted in the introduction of new cellular, wireless, and PCS products.

PROVISION FOR INCOME TAXES.  For the nine months ended December 31, 1996, the
Company's provision for income taxes was $1,218,000, an effective tax rate of
approximately 37%, compared to a provision for income taxes of $487,000, or 
40% for the corresponding period in 1995.  The difference between the rate 
used and the statutory rate of approximately 40% is due to research and 
development tax credits available to the Company which reduced taxes payable,
and tax free income generated from certain investments.

NET INCOME.  For the reasons set forth above, the Company generated a net 
income for the nine months ended December 31, 1996 of $2,074,000, or 17.8% of 
net sales, compared to a net income of $739,000, or 16.9% of net sales for the 
comparable period in 1995.


LIQUIDITY AND CAPITAL RESOURCES
---------------------------------

Historically, the Company financed its operations primarily from internally 
generated funds and, to a lesser extent, loans from stockholders and capital 
lease obligations.  In December 1995, the Company completed its initial public 
offering of 1,725,000 shares of common stock (including the exercise of the 
underwriters' over allotment option).  Of the net proceeds of approximately 
$7.7 million at December 31, 1995, $425,000 was used to repay loans from 
certain stockholders and the remainder has been used to expand manufacturing 
capability through the leasing and outfitting of substantially larger 
facilities, the acquisition of sufficient equipment to produce higher product 
quantities, and the employment and training of additional employees capable 
of expanding production and sales.  The net proceeds of the initial public 
offering are also being used to maintain increased inventory and working 
capital balances to support higher operating levels.

In August, 1996 the Company renegotiated its revolving bank line of credit.  
The new agreement is comprised of two separate credit facilities.  The initial 
facility is a $1,250,000 revolving line of credit, which bears interest at the 
bank's reference rate plus 0.75%.  The second facility is a $500,000 
non-revolving line of credit with term repayment options which may be used 
to finance up to 80% of the purchase price of equipment used in the Company's 
business.  Repayment of borrowings under this facility are in 47 equal monthly 
installments starting on October 1, 1997, with interest at the bank's reference
rate plus 1.00%. Both facilities are secured by substantially all of the 
Company's assets and expire on September 1, 1997. As of December 31, 1996, 
there were no borrowings outstanding under either facility.

At December 31, 1996 the Company had $4.6 million in cash, and $2.0 million in 
short-term tax exempt marketable securities. The Company's operating activities
provided cash of approximately $482,000 in the nine month period ended 
December 31, 1996 mainly as a result of income from operations offset by 
increases in accounts receivable and inventory. The Company's capital 
expenditures of $1.3 million for the nine months ended December 31, 1996 were 
mainly for manufacturing test equipment, leasehold improvements for new 
facilities, and information system improvements. Also, in June, 1996 the Company
paid off capital lease obligations totaling $266,000 in addition to the 
scheduled payments.

The Company believes that the net proceeds from the initial public offering, 
together with cash provided by operations and available under the bank line of 
credit, will be sufficient to finance the Company for at least the next 12 
months. Inflation has not had a significant effect to date on the Company's 
results of operations.


<PAGE>                         10


                  PART II - OTHER INFORMATION



ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K.

(a)  Exhibits 

     27     Financial Data Schedule

(b)  There were no Reports on Form 8-K filed by the Company during the 
     quarter ended December 31, 1996.

<PAGE>                          11


                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, 
the registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
          
                                     AML COMMUNICATIONS, INC.



Date:     February 12, 1997          /s/ Kirk A. Waldron
                                     -------------------
                                     Kirk A. Waldron
                                     Vice President of Finance and Chief
                                     Financial Officer (Principal Financial
                                     and Accounting Officer) 

<PAGE>                         12