SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549


                                   FORM 10-Q


                   QUARTERLY REPORT UNDER SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended December 31, 1995      Commission file no. 0-10611


                           MILGRAY ELECTRONICS, INC.
             [Exact name of Registrant as specified in its charter]


               New York                            13-5600636           
[State or other jurisdiction of              [I.R.S. employer
 incorporation or organization]              identification no.]


77 Schmitt Boulevard, Farmingdale, N.Y.                11735            
[Address of principal executive offices]        [Zip code]


Registrant's telephone number, including
     area code:                                   [516]  420-9800       



          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 latest practicable date.


             Common stock, 6,773,176 shares as of January 22, 1996
     
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                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES


                                     INDEX


                                                       Page No.

Part I -  Financial Information

          Condensed Consolidated Balance Sheets -
               December 31, 1995 and September 30, 1995     2

          Condensed Consolidated Statements of Income and
               Retained Earnings - Three Months Ended                 
               December 31, 1995 and January 1, 1995        3

          Condensed Consolidated Statements of Cash Flows -
               Three Months Ended December 31, 1995 and
               January 1, 1995                              4

          Notes to Condensed Consolidated Financial 
               Statements                                   5

          Management's Discussion and Analysis of
               Financial Condition and Results of
               Operations                                   6


Part II - Other Information

          Item 6 - Exhibits and Reports on Form 8-K         8

          Signatures                                        8   

          Exhibit Index                                     9















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<PAGE>
<TABLE>
                         PART I - FINANCIAL INFORMATION

                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES

                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             [dollars in thousands]

<CAPTION>
                                       December 31,      September 30,
                                          1995               1995     

          ASSETS
<S>
Current assets                            <C>                <C>
    Cash and other current assets         $   1,970          $   2,986
    Trade accounts receivable                38,484             39,105
    Inventories                              63,250             55,457

          Total current assets              103,704             97,548

Property, plant and equipment - at cost
    less accumulated depreciation and
    amortization of $2,379 at December
    31, 1995 and $2,246 at September 30,
    1995                                      3,614              3,347

Other assets                                    443                383

                                          $ 107,761          $ 101,278
</TABLE>
<TABLE>
<CAPTION>
    LIABILITIES AND STOCKHOLDERS' EQUITY
<S>
Current liabilities                       <C>                <C>
    Accounts payable                      $  26,433          $  26,212
    Other current liabilities                 5,323              5,676

          Total current liabilities          31,756             31,888

Long-term debt                               36,259             31,633

Deferred income taxes payable                   330                330

Stockholders' equity
    Common stock - par value $.25 per share;
          authorized 60,000,000 shares; issued,
          6,816,902 shares at December 31, 1995
          and September 30, 1995              1,704              1,704
    Retained earnings                        37,782             35,793
                                             39,486             37,497

Less treasury stock - at cost [43,726 
    shares at December 31, 1995 and
    September 30, 1995]                          70                 70
                                             39,416             37,427
                                         $  107,761        $   101,278
<F1>
           See notes to condensed consolidated financial statements.
                                    -  2  -<PAGE>


</TABLE>
<TABLE>
                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES

       CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     [in thousands, except per share data]

<CAPTION>
                                                          THREE MONTHS ENDED       
                                       December 31,         January 1,
                                          1995               1995     
<S>                                         <C>                <C>
Net sales                                   $68,059            $51,282

Costs and expenses
    Cost of sales                            53,834             39,471
    Selling, general and
          administrative expenses            10,360              8,642
    Interest expense, net                       604                339

                                             64,798             48,452

Income before income taxes                    3,261              2,830

Income taxes                                  1,272              1,047

Net Income                                    1,989              1,783

Retained earnings at beginning of
    period                                   35,793             26,488

Retained earnings at end of period          $37,782            $28,271

Income per share                            $   .29            $   .27

Weighted average common shares
    outstanding                           6,773,176          6,709,176














<F2>
           See notes to condensed consolidated financial statements.


</TABLE>
                                    -  3  -
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<TABLE>

                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 [in thousands]

<CAPTION>
                                                           THREE MONTHS ENDED        
                                       December 31,         January 1,
                                          1995               1995     
<S>                                       <C>                   <C>
Cash flows from operating activities
    Net cash provided by [used in]
          operating activities             $[5,260]             $2,459

Cash flows from investing activities
    Acquisition of property and equipment     [400]              [203]

          Net cash used in investing
               activities                     [400]              [203]

Cash flows from financing activities
    Notes payable - bank                       [27]              [154]

    Increase [decrease] in long-term debt
          including current maturities        4,644            [2,587]

          Net cash provided by [used in]
               financing activities           4,617            [2,741]

          Net decrease in cash              [1,043]              [485]

Cash at beginning of year                     1,909              2,388

Cash at end of period                          $866             $1,903

Supplemental cash flow information
    Interest paid                              $603               $322
    Income taxes paid                         1,118                402








<F3>
           See notes to condensed consolidated financial statements.



</TABLE>
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                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

            THREE MONTHS ENDED DECEMBER 31, 1995 AND JANUARY 1, 1995


NOTE 1:   The accompanying condensed consolidated financial
    statements have been prepared in accordance with the
    instructions to Form 10-Q and do not include all the information
    and footnote disclosure required by generally accepted
    accounting principles for complete financial statements.  In the
    opinion of management, all adjustments [consisting of normal
    recurring accruals] necessary for a fair presentation have been
    included.  Operating results for the three months ended December
    31, 1995 are not necessarily indicative of the results that may
    be expected for the year ending September 30, 1996.  These
    statements should be read in conjunction with the consolidated
    financial statements and related notes included in the Company's
    annual report to shareholders on Form 10-K for the year ended
    September 30, 1995.

NOTE 2:   Inventories consist primarily of electronic components,
    computer peripherals and wire products held for resale and
    components used in the assembly of connectors and are priced at
    the lower of cost or market by the use of an estimated gross
    profit percentage.

NOTE 3:   Earnings per share were calculated by dividing the weighted
    average number of common shares outstanding during each period. 
    Earnings per share were restated to give effect to a stock split
    [Note 4].

NOTE 4:   On July 19, 1995, the Board of Directors authorized a two-
    for-one stock split in the form of a 100% stock dividend payable
    on October 19, 1995 to stockholders of record on September 28,
    1995.  Accordingly, the weighted average common shares
    outstanding for the three months ended January 1, 1995 were
    restated to give effect to this stock split.











                                  -  5  -

<PAGE>


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

Liquidity and Capital Resources

    The Company relies upon cash flow provided from operations and bank
financing to provide the cash flow necessary for its business operations.  On
November 7, 1995, the Company entered into an unsecured revolving credit
agreement with three banks which provides for maximum borrowings of
$50,000,000.  This facility permits the Company to borrow at the banks'
alternate base rate less a negotiated discount for one of the banks, or at
the Company's option, the banks' Eurodollar rate plus negotiated commissions
or the banks' Bankers Acceptance Discount Rate plus negotiated commissions. 
At December 31, 1995, the banks' alternate base rate available to the
Company, after adjustment for a negotiated discount, was 8.24% weighted
average interest rate, the Bankers Acceptance Discount Rate including the
negotiated commissions was 6.82% weighted average interest rate and the
Eurodollar rate plus the negotiated commissions was 6.41% weighted average
interest rate.  Maximum borrowings are based on the sum of 90% of eligible
receivables and the lower of 50% of eligible inventory or $20,000,000.  The
agreement as amended expires on December 31, 1998 and any outstanding
balances are to be repaid.

    The Company does not currently have or anticipate having material
commitments for capital expenditures.  Working capital at December 31, 1995
amounted to $71,900,000 versus $65,700,000 at September 30, 1995.  At
December 31, 1995, liabilities to net worth ratio (leverage) was 1.75 times
the Company's tangible net worth compared to 1.72 times at September 30,
1995.

    The Company believes that its cash flow requirements for fiscal 1996 will
be met by its operating results and the use of its bank credit facility.



Three months ended December 31, 1995
Compared to the three months ended
January 1, 1995                     

Results of Operations

    Net sales were $68,059,000 in the first quarter of fiscal 1996 compared
to $51,282,000 in the like period in the preceding year.  This increase in
sales volume of approximately 33% resulted primarily from improved customer
demand across a broad spectrum of product lines.  Gross profit decreased from
23.0% in the first fiscal quarter of 1995 to 20.9% in the same period in 1996
as a result of changes in product mix and increased competition.  Selling,
general and administrative expenses amounted to $10,360,000 [15.2% of sales]
in the first quarter of fiscal 1996 compared to $8,642,000 [16.8% of sales]
in the comparable quarter in the 1995 fiscal year.  The increase in selling,
general and administrative expenses of $1,718,000 or 19.9% when compared to
the like period in the preceding year is primarily due to increases in 


                                    -  6  -<PAGE>




Management's Discussion and Analysis of Financial
Condition and Results of Operations.    [cont'd.]


salaries, commissions and other costs needed to support the higher sales
volume and the addition of sales and marketing staff to enable the Company to
sustain its rate of growth.  Interest costs in the current quarter amounted
to $604,000 [0.9% of sales] compared to $339,000 [0.7% of sales] in the
previous year as a result of higher interest rates and higher levels of
borrowing.  Income taxes amounted to $1,272,000 [39% of pre-tax income] in
the fiscal 1996 period and $1,047,000 [37% of pre-tax income] in the
comparable quarter of the preceding year.  The increase in the effective
income tax rate was due to the impact of varying state income tax rates on
pre-tax income.

    Net income was $1,989,000 for the fiscal quarter ended December 31, 1995
compared to $1,783,000 for the first three months of fiscal 1995 as a result
of the factors previously discussed.





























                                    -  7  -
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                   PART II - OTHER INFORMATION


Item 6. - Exhibits and Reports on Form 8-K

    (a)   The Exhibit Index, which follows the signature page
          of this Report on Form 10-Q, is incorporated herein
          by reference.

    (b)   No reports on Form 8-K were filed by registrant
          during the quarter for which this Report is filed.





                           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.





Date January 31, 1996                     MILGRAY ELECTRONICS, INC.        
                                        [Registrant]




                        By:        John Tortorici              
                           John Tortorici, Vice President-Finance
                                        [Authorized officer and principal
                                  financial officer]








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                     <PAGE>







                   MILGRAY ELECTRONICS, INC. AND SUBSIDIARIES


                                 EXHIBIT INDEX







     27  Financial Data Schedule




































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