SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                   FORM 10-QSB

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
         For the quarterly period ended March 31, 1999

         OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
         For the transition period from               to

         Commission file number 0-9040

                                 METRO TEL CORP.
        (Exact name of small business issuer as specified in its charter)

                   DELAWARE                                11-2014231
         (State of other jurisdiction of               (I.R.S. Employer)
         incorporation or organization)                Identification No.)

                    290 N.E. 68 Street, Miami, Florida 33138
                    (Address of principal executive offices)

                                 (305) 754-4551
                           (Issuer's telephone number)

                                 Not Applicable
                 (Former address of principal executive offices)

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[X] No[ ]

         State the number of shares outstanding of each of the issuer's classes
of common equity as of the latest practicable date: Common Stock, $.025 par
value per share - 6,925,000 shares outstanding as of May 12, 1999.

<PAGE>
<TABLE>
<CAPTION>

METRO TEL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (1)
--------------------------------------------------------------------------------------------------------
                                      For the nine months                     For the three months
                                         ended March 31,                          ended March 31,
                                    1999 (2)             1998              1999(2)          1998        
--------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>                 <C>             <C>       
Sales                                 $13,447,294     $11,342,617         $4,846,630      $3,760,431
Other revenues (3)                        390,791         154,469            101,258          32,844
                                     ------------     -----------        -----------     -----------
     Total revenues                    13,838,085      11,497,086          4,947,888       3,793,275

Cost of goods sold                      9,977,613       8,502,667          3,563,432       2,787,539
                                      -----------      ----------          ---------       ---------
     Gross profit                       3,860,472       2,994,419          1,384,456       1,005,736

Selling, general and
     administrative expenses            2,758,449       2,644,537            920,539         828,850
Research and development                  105,249                             64,343       
                                       ----------      ----------          ----------       --------
                                        2,863,698       2,644,537            984,882         828,850

     Operating income                     996,774         349,882            399,574         176,886

Other income and expenses
Interest income                            48,090          66,505             16,613          21,938
Other expenses                            (60,418)                               914
Interest expense                         (128,748)        (42,537)           (44,643)        (17,337)
                                         ---------        --------           --------        --------
                                          (80,658)        (36,450)           (28,030)          5,515

Earnings before taxes                     916,116         313,432            371,544         182,401
Provision for income taxes                253,017                            148,618         --------
                                          -------         --------           -------

     Net earnings                        $663,099        $313,432           $222,926        $182,401

Basic earnings per share (4)             $     .11       $    .07           $    .03        $    .04
Diluted earnings per share (4)           $     .10       $    .07           $    .03        $    .04

Weighted average number of
    shares outstanding:
Basic (5)                               5,917,646       4,720,954          6,875,000       4,720,954
Diluted (5)                             6,414,632       4,720,954          7,371,986       4,720,954
=====================================================================================================
PRO FORMA AMOUNTS
Earnings before taxes                  $  916,116                         $  371,544
Executive compensation (6)                259,668                                   
                                      -----------                        -----------
Pro forma earnings before taxes         1,175,784                            371,544
Provision for income taxes (7)            470,314                            148,818
                                      -----------                        -----------
Proforma net earnings                  $  705,470                         $  222,926

Proforma basic earnings
     per share                         $      .12                         $      .03
Proforma diluted earnings
     per share                         $      .11                         $      .03
Weighted average number of 
     shares outstanding:
Basic (5)                               5,917,646                          6,875,000
Diluted (5)                             6,414,632                          7,371,986
</TABLE>

                                       -2-

<PAGE>
<TABLE>
<CAPTION>

METRO TEL CORP

CONSOLIDATED BALANCE SHEETS   Unaudited (1)

                                                  March 31, 1999(2)              June 30, 1998
                                                  -----------------              -------------

<S>                                                 <C>                          <C>        
ASSETS
------

CURRENT ASSETS
Cash and cash equivalents                           $   624,554                  $   828,390
Accounts receivable, net                              1,647,802                      981,432
Inventories                                           4,206,868                    2,911,158
Current portion of lease receivables                    144,715                      161,007
Prepaid expenses and other                               61,964                       33,490
                                                    -----------                  -----------
     Total current assets                             6,685,903                    4,915,477

Lease receivables due after one year                    104,756                      148,651

Deferred income tax                                     133,000
Property and equipment, at cost-
     net of accumulated depreciation
     and amortization                                   190,831                      146,461
Other assets                                            173,555                       33,748
                                                    -----------                  -----------

                                                     $7,288,045                   $5,244,337
                                                    ===========                  ===========

</TABLE>

                                       -3-

<PAGE>
<TABLE>
<CAPTION>

METRO TEL CORP

CONSOLIDATED BALANCE SHEETS  Unaudited (1)

LIABILITIES AND SHAREHOLDERS'
     EQUITY

                                                  March 31, 1999(2)               June 30, 1998
                                                  -----------------               -------------

<S>                                                 <C>                            <C>       
CURRENT LIABILITIES
Accounts payable and accrued
     expenses                                        $  818,320                    $1,494,975
Line of credit                                                                      1,000,000
Current portion of bank loan                            480,000                       200,000
Customer deposits                                       299,870                       389,371
Income taxes payable                                    119,079                              
                                                     ----------                    ----------

     Total current liabilities                        1,717,269                     3,084,346
                                                     ----------                    ----------

Long term loan less current portion                   1,760,000                       216,613
Deferred income tax                                       5,000

SHAREHOLDER'S EQUITY
Common stock, 15,000,000 shares
     authorized, 6,901,250 shares issued
     and 6,875,000 shares outstanding
     as of  November 30, 1998                           172,531                       118,024
Additional paid-in capital                            1,992,664                        51,726
Retained earnings                                     1,709,331                     1,773,628
Less 26,250 shares of treasury
     stock at cost                                      (68,750)                             

Total shareholder's equity                            3,805,776                     1,943,378
                                                     ----------                    ----------

                                                     $7,288,045                    $5,244,337
                                                     ==========                    ==========

</TABLE>

                                       -4-

<PAGE>
<TABLE>
<CAPTION>

METRO  TEL CORP.
STATEMENTS OF CASH FLOWS   Unaudited (1)

                                                         Nine months ended           Nine months ended
                                                             March 31,                   March 31,
                                                             1999  (2)                      1998   
                                                         -----------------           ------------------
<S>                                                          <C>                       <C>        
Cash flows from operating activities:
   Net income                                                $   663,099               $   313,432
   Adjustments to reconcile net income to net cash
     provided by operating activities:
       Bad debt expense                                            4,145                    83,130
       Depreciation and amortization                              27,042                    23,135
       Net changes in operating assets and liabilities:
       (Increase) decrease in:
       Accounts and lease receivables                           (203,569)                  (13,136)
       Inventories                                               326,434                   287,166
       Prepaid expenses and other assets                         (55,106)                   64,941
       Increase (decrease) in:
       Accounts payable and accrued expenses                  (1,416,136)                 (217,068)
       Customer deposits                                         (89,501)                  (10,198)
       Income taxes payable                                      119,079                  
                                                              ----------                 ----------
Cash provided (used) by operating activities                    (624,513)                  531,402

Cash flows form investing activities:
   Capital expenditures                                          (60,204)                  (40,473)
   Cash of acquired company                                      384,888                  
                                                              ----------                 ----------
Cash flows provided (used) in investing activities               324,684                   (40,473)

Cash flows from financing activities:
   Payments on line of credit                                 (1,000,000)                 (500,000)
   Payments on term loan                                        (416,613)                 (150,054)
   Borrowings on line of credit                                                            500,000
   Borrowings under new term loan                              2,400,000
   Payments under new term loan                                 (160,000)
   Cash distribution to shareholders                            (727,394)                 (400,000)
                                                              -----------                ----------
Cash flows provided (used) by financing activities                95,993                  (550,054)

Decrease in cash and cash equivalents                           (203,836)                  (59,125)
Cash and cash equivalents at beginning of period                 828,390                   933,028
                                                              ----------                 ----------

Cash and cash equivalents at end of period                   $   624,554                $   873,903
                                                             -----------                 ----------
Supplemental information:
   Cash paid for interest                                    $   128,748                $    42,537
   Cash paid for income taxes                                    125,000
Non-cash transactions
   Acquisition of net assets                                   1,541,807
</TABLE>

                                       -5-

<PAGE>



                                 METRO TEL CORP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note (1) General: The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB related to interim
period financial statements. Accordingly, these financial statements do not
include certain information and footnotes required by generally accepted
accounting principles for complete financial statements. However, the
accompanying unaudited financial statements contain all adjustments (consisting
only of normal recurring accruals) which, in the opinion of management, are
necessary in order to make the financial statements not misleading. The results
of operations for interim periods are not necessarily indicative of the results
to be expected for the full year. For further information, refer to the
Company's financial statements and footnotes thereto included in the Company's
Transition Annual Report on Form 10-KSB for the period January 1, 1998 to June
30, 1998.

NOTE (2) Basis of Presentation: On November 1, 1998, Steiner-Atlantic Corp.
("Steiner") was merged (the "Merger") with and into, and became a wholly-owned
subsidiary of, Metro Tel Corp. ("Metro Tel" and collectively with Steiner, the
"Company"). As a result of the Merger, the Company has added Steiner's
operations as a supplier of dry cleaning, industrial laundry equipment and steam
boilers to Metro Tel's telecommunications operations as a manufacturer and
seller of telephone test sets and customer premise equipment.

The Company's Quarterly Report on Form 10-QSB for the nine months ended March
31, 1998, heretofore filed by the Company with the Securities and Exchange
Commission, reflected only the business and financial statements of Metro Tel
Corp. on a stand-alone basis.

For financial accounting (but not corporate law) purposes, the Merger is treated
as a "reverse" acquisition of Metro Tel by Steiner utilizing the "purchase"
method of accounting. As a result, all financial statements of the Company
included in this Report covering periods prior to November 1, 1998 reflect only
the results of operations, financial position and cash flows of Steiner on a
stand alone basis. All consolidated financial statements of the Company for
periods commencing November 1, 1998, in addition, include the results of
operations, financial position and cash flows of Metro Tel from and after
November 1, 1998. Accordingly, the results of operations for both reported
periods of 1998 do not reflect the results of telecommunications operations. The
results for the nine month period ended March 31, 1999 includes five months of
telecommunications operations. The results for the three month period ended
March 31, 1999 reflect the operations of both Steiner and Metro Tel.

Steiner's outstanding shares (339,500) at the date of Merger are deemed to have
been recapitalized to 4,720,954 (the number of shares of the Company's Common
Stock issued in respect of Steiner's outstanding Common Stock in the Merger).
The attached financial statements give effect to this recapitalization.

                                       -6-

<PAGE>



NOTE (3) Management Fees: Management fees for all periods presented have been
reclassified for comparative purposes.

NOTE (4) Earnings Per Common Share: In 1997, the FASB issued Statement No. 128,
"Earnings Per Share". Statement No. 128 replaced the calculation of primary and
fully diluted earnings per share. Unlike primary earnings per share, basic
earnings per share excludes any dilutive effects of stock options. Diluted
earnings per share is similar to the previously reported fully diluted earnings
per share. All earnings per share amounts for all periods have been presented to
conform to the Statement No. 128 requirements.

NOTE (5) Weighted Average Number of Shares: The difference between the weighted
average number of shares in basic and diluted earnings per share is due to the
outstanding stock options.

NOTE (6) Executive Compensation Adjustment: The adjustment in pro forma amounts
for executive compensation represents executive salaries paid to certain
executives in the periods shown in excess of the salaries to be paid to them
after consummation of the Merger.

NOTE (7) Income Tax Adjustment: Prior to this period, Steiner was a Subchapter S
corporation under the Internal Revenue Code of 1986, as amended, and,
accordingly, its shareholders, rather than it, were subject to income taxation
on Steiner's earnings. The adjustment to the provision for income taxes
represents income taxes had Steiner been taxed under Subchapter C of the Code
for the periods shown.

                                       -7-

<PAGE>

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

On November 1, 1998, Steiner-Atlantic Corp. ("Steiner") was merged ( the
"Merger") with and into, and became a wholly owned subsidiary of, Metro Tel
Corp. ("Metro Tel" and collectively with Steiner, the "Company"). As a result of
the Merger, the Company has added Steiner's operations as a supplier of dry
cleaning, industrial laundry equipment and steam boilers to Metro Tel's
telecommunications operations as a manufacturer and seller of telephone test and
customer premise equipment.

The Company's Quarterly Report on Form 10-QSB for the nine months ended March
31, 1998, heretofore filed by the Company with the Securities and Exchange
Commission, reflected only the business and financial statements of Metro Tel
Corp. on a stand-alone basis.

For financial accounting (but not corporate law) purposes, the Merger is treated
as a "reverse acquisition" of Metro Tel by Steiner utilizing the "purchase"
method of accounting. As a result, all financial statements of the Company
included in this Report covering periods prior to November 1, 1998 reflect only
the results of operations, financial position and cash flows of Steiner on a
stand-alone basis. All consolidated financial statements of the Company for
periods commencing November 1, 1998, in addition, include the results of
operations, financial position and cash flows of Metro Tel from and after
November 1, 1998. Accordingly, the results of operations for both reported
periods of 1998 do not reflect the results of telecommunications operations. The
results for the nine month period ended March 31, 1999 includes five months of
telecommunications operations. The results for the three month period ended
March 31, 1999 reflect the operations of both Steiner and Metro Tel.

LIQUIDITY AND CAPITAL RESOURCES

For the nine month period ended March 31, 1998, cash decreased by $203,836.
Operating activities used cash of $624,513, principally to reduce accounts
payable and accrued expenses ($1,416,136) and customer deposits ($89,501) and to
support an increase in accounts and lease receivables ($203,569) and an increase
in pre-paid expenses and other assets ($55,106). These uses were partially
offset by $663,099 provided by the Company's net income supplemented by non-cash
expenses of $27,042 for depreciation and amortization and $4,145 for bad debts,
a reduction in inventories ($326,434) and an increase in the liability for
income taxes payable ($119,079). Investing activities provided cash of $324,684
reflecting Metro- Tel's cash position of $384,888 at the time of the Merger,
partially offset by $60,204 used to purchase capital assets. On November 2,
1998, Steiner entered into a Loan and Security Agreement with First Union
National Bank. Under the Loan Agreement, the bank has made a term loan to
Steiner of $2,400,000 and provided Steiner with a revolving credit facility
entitling it to borrow up to $2,500,000 until the earlier of November 2, 1999 or
the date the bank demands repayment of revolving credit loans. The term loan is
payable in monthly installments of $40,000 plus interest, commencing January
1999 with a $960,000 balloon payment in January 2002. The loans, which are
guaranteed by Metro Tel, are secured by pledges of substantially all of the
present and future assets and property, excluding real estate of Metro Tel and
Steiner. A portion of the proceeds of the tem loan were used to repay

                                       -8-

<PAGE>



Steiner's existing line of credit of $1,000,000 and the remaining outstanding
balance ($416,613) of Steiner's former term loan, as well as to fund the
remaining Subchapter S distributions ($727,394) payable to the former
shareholders of Steiner. Installment payments of $160,000 have been made for the
nine month period ended March 31, 1999 on the new term loan. The foregoing
resulted in a net $95,993 being provided by financing activities. The Company
believes that its present cash and cash it expects to generate from operations
will be sufficient to meet its operational needs.

YEAR 2000 COMPLIANCE

The Company believes that its internal management information systems, billing,
payroll and other information services are Year 2000 compliant. The Company has
already upgraded its software programs at a cost of less than $2,000 and carried
out certain tests of its accounts receivable and accounts payable files which
are date sensitive and found all systems to operate properly. The Company is not
linked by computer with any of its customers or vendors. Orders are received and
purchase orders are sent by telecopy, telephone, in person or by mail.
None of these methods are date sensitive.

RESULTS OF OPERATIONS

The results for the nine month period ended March 31, 1999 reflect the results
of dry cleaning and laundry equipment and steam boiler operations of Steiner
along with five months of telecommunications operations of Metro Tel. Results
for the three month period then ended reflect the results of both the dry
cleaning and telecommunications operations. Results for periods in fiscal 1998
reflect only the results of Steiner.

Net sales for the nine and three month periods ended March 31, 1999 increased by
$2,104,677 (18.6%) and $1,086,199 (28.9%), respectively, from the comparable
periods of fiscal 1998 due to the increased sales of laundry equipment, steam
boilers and spare parts which offset a reduction in sales of dry cleaning
equipment, as well as the inclusion for the nine and three month periods of
$1,190,535 and $666,883, respectively, of telecommunication equipment sales.
Other revenues increased by $236,322 (153.0%) and $68,414 (208.3%),
respectively, for the nine and three month periods of fiscal 1999 when compared
to the comparable periods of fiscal 1998, mainly due to increased management
fees.

The Company's gross profit margin, expressed as a percentage of sales, increased
to 27.9% for the nine month period of fiscal 1999 from 26.0% for the same period
of fiscal 1998. For the three month period, gross margin increased to 28.0% in
fiscal 1999 from 26.5% in same period of fiscal 1998. These increases are mainly
due to the inclusion of telecommunications operations and the increase in sales
of spare parts, all of which carry a higher margin, and higher management fees.

Selling, general and administrative expenses increased by $113,912 (4.3%) and
$91,689 (11.1%) for the nine and three month periods, respectively, in fiscal
1999 from the comparable periods of fiscal 1998. The increase in both periods
was attributed to the inclusion of the telecommunications operations which
offset a reduction in this category of

                                       -9-

<PAGE>



Steiner's expenses caused by a decrease in executive compensation as a result of
the Merger. See pro forma amounts.

Research and development expenses relate solely to the telecommunications
operations included following the Merger on November 1, 1998.

Interest expense increased by $86,211 (202.7%) and $27,306 (157.5%) in the nine
and three month periods of fiscal 1999 over the comparable periods of fiscal
1998 due to the higher level of indebtedness.

Provision for income taxes is reflected only for the five months following the
Merger on November 1, 1998. Prior to this period, Steiner was a Subchapter S
corporation under the Internal Revenue Code of 1986, as amended, and,
accordingly, its shareholders, rather than it, were subject to income taxation
on Steiner's earnings. See proforma amounts.

                                      -10-

<PAGE>



                           PART II - OTHER INFORMATION

Item 2.  Changes in Securities and Use of Proceeds

           No securities were issued by the Company during the quarter covered
by this Report. However, on April 23, 1999, Venerando J. Indelicato, Treasurer
and a director of the Company, exercised a stock option granted under the
Company's 1991 Stock Option Plan. Mr. Indelicato has agreed, in his option
contract, that any shares purchased upon exercise of the option will be acquired
for investment and not with a view to the distribution or resale thereof within
the meaning of the Securities Act of 1933, as amended (the "Securities Act").
The Company believes that the exemption from registration afforded by Section
4(2) of the Securities Act is applicable to the issuance of such shares.

Item 7.  Exhibits and Reports on Form 8-K

         (a)      Exhibits

                  27.      Financial Data Schedule

         (b)      Reports on Form 8-K

         The only Current Report on Form 8-K filed by the Company during the
period covered by this report was a Current Report on Form 8-K dated (date of
earliest event reported) January 4, 1999, reporting under Item 4: Changes in
Registrant's Certifying Accountant, Item 5: Other Events, and Item 7: Financial
Statements, Pro Forma Financial Information and Exhibits. No financial
statements were filed with the Report.


                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                           METRO-TEL CORP.


Date:    May 14, 1999               By:    /s/ Venerando J. Indelicato          
                                           -------------------------------------
                                                    Venerando J. Indelicato
                                                    Treasurer and
                                                    Chief Financial Officer





                                       11
<PAGE>



                                 EXHIBIT INDEX



Exhibit No.                     Description
----------                      -----------

27                              Financial Data Schedule