UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                       450 Fifth Street, NW
                      Washington, DC  20549

                           FORM 10-QSB



(Mark One)
(  ) QUARTERLY REPORT UNDER SECTION_13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended April 5, 1998

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     For the transition period from __________ to __________

                                   Commission file number 2-69336



                           CRAMER, INC.

A Kansas Corporation              IRS Employment I.D. #48-0638707
625 Adams Street
Kansas City, Kansas  66105           Telephone No. (913) 621-6700

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 that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90_days.     Yes (  No 



               APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: 
4,051,400 shares of common stock, no par value.





<PAGE>




                  PART I. FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

                           CRAMER, INC.
                          BALANCE SHEET
                            UNAUDITED
              (Amounts in $000's, except share data)

     ASSETS                              4/5/98           12/31/97
CURRENT ASSETS:
  Cash                                  $    33        $      52
  Trade receivables, 
     net of allowance of $21                979              990
  Inventories                             1,288            1,242
  Prepaid expenses                          272              302
     Total current assets                 2,572            2,586

PROPERTY AND EQUIPMENT:
  At cost                                 5,634            5,614
  Accumulated depreciation 
     and amortization                     4,919            4,881
       Net property and equipment           715              733

OTHER ASSETS:
  Intangible pension asset                  212              212
  Goodwill                                  197              198
  Other non current assets                  218              219
     Total Assets                  $      3,914        $   3,948

  LIABILITIES AND EQUITY

CURRENT LIABILITIES:
  Notes payable                    $      1,015        $   1,188
  Accounts payable                          654              498
  Accrued liabilities                       520              549
     Total current liabilities            2,189            2,235

NONCURRENT LIABILITIES:
  Pension benefits payable                  560              581
  Other                                     270              234
     Total noncurrent liabilities           830              815

Stockholders' equity:
  Common stock, no par value; 
     authorized, 6,000,000 
     shares; issued and outstanding, 
     4,051,400 shares at 
     April 5,1998 and 
     December 31, 1997                    3,824            3,824
  Accumulated deficit                    (2,715)          (2,712)
                                          1,109            1,112
  Minimum pension liability 
     adjustment                            (214)            (214)
       Net stockholders' equity             895              898

       Total Liabilities and 
        Stockholders' Equity       $       3,914       $    3,948


<PAGE>


                           CRAMER, INC.
                       STATEMENTS OF INCOME
                            UNAUDITED
            (Amounts in $000's, except per share data)


                                        QUARTER ENDED
                                   4/5/98            3/30/97

Net sales                          $ 3,180             $  2,859
Cost of sales                        2,339                2,145
     Gross profit                      841                  714

Operating expenses:
  Selling                              576                  424
  General and administrative           269                  249
     Total operating expenses          845                  673

     Income (loss) from operations      (4)                  41

Other income (expense):
  Interest expense, net                 (25)                (24)
  Other, net                             26                  16
     Total other income (expense)         1                  (8)

Income (loss) before income taxes        (3)                 33

Income taxes                              0                   0

Net income (loss)                  $     (3)           $     33



Earnings (loss) per share 
based on weighted average 
number of common equivalent 
shares outstanding, 4,051,400 
and 3,840,650 for the quarters 
ending 4/5/98 and 3/30/97, 
respectfully                       $   0.00            $   0.01



<PAGE>

                           CRAMER, INC.
                     STATEMENTS OF CASH FLOWS
                            UNAUDITED
                       (Amounts in $000's)


                                             QUARTER ENDED
                                        4/5/98         3/30/97

Cash flows from operating activities:
  Net income(loss)                      $    (3)       $     33
  Adjustments to reconcile net 
     income to net cash provided by 
     (used in) operating activities:

     Depreciation and amortization           40              48
     Changes in operating assets 
       and liabilities:

       Accounts receivable                   11              44
       Inventory                            (46)            (95)
       Prepaid expenses                      30               1
       Other assets                           0             (27)
       Accounts payable and accrued 
         expenses                           127            (119)
       Other noncurrent liabilities          15              31

         Net cash provided by 
         (used in) operating 
         activities                         174             (84)

Cash flows from investing activities:
  Capital expenditures                      (20)            (35)

Cash flows from financing activities:
  Principal payments on notes payable 
     and long-term notes                  (1,003)        (2,994)
  Proceeds from issuance of 
     notes payable and long-term 
     notes                                   830          3,064

     Net cash provided by (used in) 
      financing activities                  (173)            70

Net increase (decrease) in cash              (19)           (49)
Cash at beginning of year                     52            117

Cash at end of quarter                  $     33       $     68

Supplemental disclosures:
  Cash paid during the quarter for:
     Interest                           $     25       $     24
     Income tax                         $      0       $      0


<PAGE> 




Item 2.

               MANAGEMENT'S DISCUSSION AND ANALYSIS

     Except for the historical information contained herein, this
     report on Form 10-QSB contains forward-looking statements that
     involve risk and uncertainties.  The Company's actual results
     could differ materially. In connection with the "safe harbor"
     provisions of the Private Securities Litigation Reform Act of
     1995, Cramer, Inc. reminds readers that there are many
     important factors that could cause the Company's actual
     results to differ materially from those projected in
     forward-looking statements of the Company made by, or on
     behalf of, the Company.  When used in this Form_10-QSB and in
     other filings by the Company with the Securities and Exchange
     Commission, in the Company's press releases and in oral
     statements made with the approval of an authorized executive
     officer, words or phrases such as "will likely result", "are
     expected to", "will continue", "is anticipated", "estimate",
     "project" or similar expressions are intended to identify
     forward-looking statements.  The Company wishes to caution
     readers not to place undue reliance on such forward-looking
     statements.

     There are a number of reasons why investors should not place
     undue reliance on forward-looking statements.  Among the 
     risks and uncertainties that could cause the Company's actual
     results for future periods to differ materially from any
     forward-looking statements made are the following:

 .    Fluctuations or reductions in product demand and market
     acceptance
 .    The level of product development by the Company
 .    Capacity and supply constraints or difficulties
 .    The results of financing efforts
 .    The effect of new laws and regulations
 .    Unexpected additional expenses or operating losses
 .    Competition
 .    The Company's reliance on certain vendors for key components.

     The foregoing list of risks and uncertainties is not meant to
     be complete.



<PAGE>



A.   Summary of Operations

     At $3,180,000 net sales for the first quarter of 1998 were
     $321,000 or 11% larger than for the same period in 1997.  The
     increase in net sales reflects the continued strengthening of
     the Company's seating and utility products business.  The
     intake of new orders were $3,235,000 in the first quarter of
     1998 as compared to 2,914,000 in the same period in 1997, an
     increase of 11%.  At April 5, 1998, the Company's backlog of
     unfilled orders was $813,000, an increase of $7,000 from the
     level at December 31, 1997.  Substantially all of the
     Company's backlog is scheduled to ship in the next three
     months.

    The Company's gross margin in the first quarter of 1998
    increased by $127,000 from the level in the first quarter of
    1997.  As a percentage of sales, margins improved from 24.9%
    to 26.4%.  The improvements in margins reflects sales price
    increases instituted in the summer of 1997 and improved
    manufacturing efficiency achieved as a result of the increased
    sales volume.

    Selling expenses were $576,000 in the first quarter of 1998,
    an increase of $152,000 as compared to the first quarter of
    1997.  Approximately $34,000 of the increase represents
    commissions and similar costs that vary directly with sales
    volume.  Of the remaining increase, $88,000 relates to the
    ongoing introduction costs for the Company's new Floating Arms
    articulating keyboard product.  The remaining increase is due
    to expanded marketing programs necessary to develop the
    increased sales in the seating and utility products lines.

    General and administrative expenses during the first quarter
    of 1998 increased by $20,000 when compared to the first
    quarter of 1997.  The increase consists primarily of
    additional engineering expenses incurred to expand the
    Company's product offering and to shorten the new product
    development process.

    Primarily as a result of the increase in selling expenses,
    income (loss) from operations in the first quarter of 1998
    decreased by $45,000 as compared to the results in the first
    quarter of 1997.

    Other, non-operating income in the first quarter of 1998
    increased by $10,000 as compared to the first quarter of 1997. 
    The increase is due to the receipt of $18,000 in workers
    compensation insurance premium refunds.  The refunds are due
    to positive experience in workers compensation costs which
    management attributes to the Company's proactive and
    innovative safety and return to work programs instituted in
    prior years.



<PAGE>



    While the results for the first quarter of 1998 were lower
    than in the same period in 1997, management believes that
    1998's year-end results will improve on those realized in
    1997.  The increase in new order intake and net sales are
    anticipated to continue throughout the remainder of 1998 as
    the Company realizes the benefit of new product introduction
    already completed and scheduled for the second quarter of the
    year.  Furthermore, the introductory costs associated with the
    Company's new articulating keyboard product are expected to
    fall in proportion to sales volume as the distribution of this
    product line is established and as technical enhancements to
    the product are completed.

B.  FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES

    The Company's trade accounts receivables decreased by $11,000
    from December 31, 1997 to April 5, 1998.  The decrease
    occurred despite having approximately the same total sales
    volume in February and March 1998 as compared to the last two
    months of 1997 and is a result of management's continued
    emphasis on improving its cash flow by reducing days sales
    outstanding.

    Inventory increased by $46,000 during the first quarter of
    1998.  The increase is primarily in raw materials and work in
    progress.  Late in the first quarter of 1998, the Company
    began increasing its stock of seating components in order to
    support the shipment of three new chair lines scheduled for
    release during the second quarter of this year.

    Capital expenditures were held in tight control and aggregated
    only $20,000 during the first quarter of 1998.  Purchases
    during the quarter consisted primarily of factory tooling. 
    The rate of purchases of capital equipment purchases is
    anticipated to increase significantly during the remainder of
    1998.  Scheduled capital equipment expenditures include
    enhancements to the Company's manufacturing equipment,
    computer hardware, and the purchase of additional tooling
    necessary for third and fourth quarter new product
    introductions.

    The Company's accounts  payable increased by $156,000 from the
    December 31, 1997 level.  The increase is the result of
    refinements in the Company's vendor payment strategy whereby
    payment terms to non-critical suppliers have been slightly
    extended.

    As a result of the positive cash flow from operations, the
    Company reduced its borrowing under its short-term line of
    credit by $173,000 during the first quarter of 1998.

    The Company continues to participate in a consolidated cash
    management and credit facility with its parent, Rotherwood
    (see discussion in Note 3 to the Financial Statements in the
    Company's 1997 Form 10KSB).  Management believes that the
    Company's access to this facility, along with existing cash
    balances and cash generated from future operations, will be
    adequate to meet future operating requirements and liquidity
    needs.


<PAGE>

      

                   PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

    The Company is a defendant in several lawsuits relating to
    product liability claims arising from accidents allegedly
    occurring in connection with the use of its products.  The
    claims are covered by insurance and are being defended by the
    Company's independent counsel or by counsel assigned by the
    Company's insurance carriers, but are subject to deductibles
    ranging from $0 to $100,000.  A number of the claimants allege
    substantial damages.  While management believes the Company
    has substantial defenses with respect to the claims, the
    ultimate outcome of such litigation cannot be predicted with
    certainty.  The Company has reasonably estimated and accrued
    in its financial statements its portion of the deductible as
    a product liability contingency.  Such claims are an ordinary
    aspect of the Company's business.


ITEM 2.  CHANGES IN SECURITIES

    None.



ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

    None.



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None.



ITEM 5.  OTHER INFORMATION

    None.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

    None.



<PAGE>



                            SIGNATURES

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



                                  CRAMER, INC.
                                  (Registrant)



Date: May 14, 1998                /s/  Gary A. Rubin
                                  Gary A. Rubin
                                  Vice President, Finance & CFO