<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                              -------------------
                                   FORM 10-Q

(Mark One)

    /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
        EXCHANGE ACT OF 1934

             For the Quarterly Period Ended June 30, 1998

    / / 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 0-68440


                           STRATEGIC DIAGNOSTICS INC.
             (Exact name of Registrant as specified in its charter)

                          ----------------------------


        Delaware                                             56-1581761
(State or other jurisdiction of                          (I.R.S. employer
incorporation or organization)                           identification no.)

          111 Pencader Drive
           Newark, Delaware                                     19702
(Address of principal executive offices)                      (Zip Code)


       Registrant's telephone number, including area code: (302) 456-6789

                              --------------------


              Former Name, Former Address and Former Fiscal Year,
                       if Changed Since Last Report: None


        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 
                                             ---  ---

        As of June 30, 1998 there were 13,223,157 outstanding shares of the
Registrant's common stock, par value $.01 per share.
<PAGE>


                           STRATEGIC DIAGNOSTICS INC.

                                     INDEX
<TABLE>
<CAPTION>

Item                                                                                         Page
----                                                                                         ----
<S>                                                                                        <C>
PART I

ITEM 1. Financial Statements (Unaudited)

        Consolidated Balance Sheets - June 30, 1998 and December 31, 1997                      2
        Consolidated Statements of Operations - Three months and six months ended       
                June 30, 1998 and 1997                                                         3
        Consolidated Statements of Cash Flows - Six months ended June 30, 1998
                and 1997                                                                       4
        Notes to Consolidated Interim Financial Statements                                     5

ITEM 2. Management's Discussion and Analysis of Financial Condition                     
        and Results of Operations                                                              9

PART II                                                                                       12

       ITEM 4. Submission of Matters to a Vote of Securities Holders                          12
       ITEM 6. Exhibits and Reports on Form 8-K                                               12

SIGNATURES                                                                                    13



</TABLE>

<PAGE>


                                     PART I

ITEM 1. FINANCIAL STATEMENTS

                  STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS
                       (in thousands, except share data)
<TABLE>
<CAPTION>
                                                                        June 30,                  December 31,
---------------------------------------------------------------------------------------------------------------
                                                                         1998                         1997
---------------------------------------------------------------------------------------------------------------
                                                                      (unaudited)
---------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                        <C>
 ASSETS
 CURRENT ASSETS:
         Cash and cash equivalents                                       $ 2,048                      $ 2,580
         Short-term investments                                            3,929                        3,638
         Receivables                                                       4,327                        3,159
         Inventories                                                       1,817                        1,547
         Other current assets                                                214                          174
---------------------------------------------------------------------------------------------------------------
                 Total current assets                                     12,335                       11,098
---------------------------------------------------------------------------------------------------------------
 PROPERTY AND EQUIPMENT, net                                                 670                          496
 OTHER ASSETS                                                                629                          634
 INTANGIBLE ASSETS, net                                                    1,692                        1,832
---------------------------------------------------------------------------------------------------------------
                 Total assets                                            $15,326                      $14,060
===============================================================================================================
 LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------------------------------------------------------------------------------
 CURRENT LIABILITIES
         Accounts payable                                                $ 1,194                      $   619
         Accrued expenses                                                    940                          953
         Deferred revenue                                                      2                          100
         Current portion of capital lease obligations                         12                           23
---------------------------------------------------------------------------------------------------------------
                 Total current liabilities                                 2,148                        1,695
---------------------------------------------------------------------------------------------------------------
 CAPITAL LEASE OBLIGATIONS                                                    20                           25
---------------------------------------------------------------------------------------------------------------
 STOCKHOLDERS' EQUITY
         Preferred stock, $.01 par value, 17,500,000 shares authorized,
                 no shares issued or outstanding                               -                            -
         Series A preferred stock, $.01 par value, 2,164,362 
                 authorized, issued and outstanding                           22                           22
         Common stock, $.01 par value, 35,000,000 authorized,
                 13,223,157 and 13,112,949 issued and outstanding
                 at June 30, 1998 and December 31, 1997, respectively        132                          132
         Additional paid-in capital                                       23,941                       23,913
         Accumulated deficit                                             (10,912)                     (11,702)
         Cumulative translation adjustments                                  (25)                         (25)
         Deferred compensation                                                 -                            -
---------------------------------------------------------------------------------------------------------------
                 Total stockholders' equity                               13,158                       12,340
---------------------------------------------------------------------------------------------------------------
                 Total liabilities and stockholders' equity              $15,326                      $14,060
===============================================================================================================
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       2
<PAGE>


                  STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except share and per share data)
                                  (unaudited)
<TABLE>
<CAPTION>

                                                               Three Months                                 Six Months
                                                              Ended June 30,                               Ended June 30,
-----------------------------------------------------------------------------------------------------------------------------------
                                                        1998                1997                   1998                    1997
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                  <C>                     <C>                    <C> 
NET REVENUES:
         Product related                          $     4,886          $     3,103             $     7,407             $     5,506
         Contract and other                               290                  395                     665                     766
-----------------------------------------------------------------------------------------------------------------------------------
                 Total net revenues                     5,176                3,498                   8,072                   6,272
-----------------------------------------------------------------------------------------------------------------------------------
 OPERATING EXPENSES:
         Manufacturing                                  1,789                1,330                   2,920                   2,250
         Research and development                         465                  409                     842                     903
         Selling, general and administrative            2,243                1,468                   3,697                   2,788
-----------------------------------------------------------------------------------------------------------------------------------
                 Total operating expenses               4,497                3,207                   7,459                   5,941
-----------------------------------------------------------------------------------------------------------------------------------
                 Operating income                         679                  291                     613                     331

 Interest and other income (expense), net                  91                   60                     177                     129
-----------------------------------------------------------------------------------------------------------------------------------
 NET INCOME                                       $       770          $       351             $       790             $       460
===================================================================================================================================

 BASIC NET INCOME PER COMMON SHARE                $      0.06          $      0.03             $      0.06             $      0.04
===================================================================================================================================
 SHARES USED IN COMPUTING BASIC
         NET INCOME PER COMMON SHARE               13,202,000           13,089,949              13,168,000              13,089,949
===================================================================================================================================

 DILUTED NET INCOME PER COMMON SHARE              $      0.05          $      0.02             $      0.05             $      0.03
===================================================================================================================================
 SHARES USED IN COMPUTING DILUTED
         NET INCOME PER COMMON SHARE               16,361,000           15,520,000              16,306,000              15,553,000
===================================================================================================================================
</TABLE>

        The accompanying notes are an integral part of these statements.


                                       3
<PAGE>


                   STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>


                                                                             Six Months
                                                                            Ended June 30,
-----------------------------------------------------------------------------------------------
                                                                        1998            1997
-----------------------------------------------------------------------------------------------
<S>                                                                  <C>              <C>
Cash Flows from Operating Activities:
Net income (loss)                                                    $   790          $   460
        Adjustments to reconcile net income to
        cash used in operating activities:
                Depreciation and amortization and other, net             299              365
(Increase) decrease in:
        Receivables                                                   (1,168)          (1,100)
        Inventories                                                     (270)            (222)
        Other current assets                                             (40)             236
        Note receivable and other assets                                   5               (1)
Increase (decrease) in:
           Accounts payable                                              575             (869)
           Accrued expenses                                              (13)            (888)
           Deferred revenue                                              (98)             (27)
-----------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities                       80           (2,046)

Cash Flows from Investing Activities:
        Purchase of property and equipment                              (333)             (45)
        Short-term investment activity, net                             (291)           2,020
-----------------------------------------------------------------------------------------------
Net cash provided by (used in) investing activities                     (624)           1,975

Cash Flows from Financing Activities:
        Proceeds from exercise of incentive stock options                 28                -
        Repayments on capital lease obligations                          (16)             (43)
-----------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities                       12              (43)

Net Decrease in Cash and Cash Equivalents                               (532)            (114)

Cash and Cash Equivalents, Beginning of Period                         2,580              917
-----------------------------------------------------------------------------------------------
Cash and Cash Equivalents, End of Period                             $ 2,048          $   803
===============================================================================================

Supplemental Cash Flow Disclosure:

        Cash paid for interest                                            14               21
===============================================================================================
</TABLE>

        The accompanying notes are an integral part of these statements

                                       4
<PAGE>

                  STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                 (in thousands, except share and per share data)
                                   (unaudited)

1. BACKGROUND:

Business
--------

        Strategic Diagnostics Inc. (the "Company") develops, manufactures and
      markets immunoassay based test kits for rapid and inexpensive detection of
      a wide variety of substances in the water quality, industrial and
      agricultural market segments.

Business Risks
--------------

        The Company is subject to risks of entities in similar stages of
      development. These risks include the Company's ability to successfully
      develop, produce and market its products and its dependence on its key
      collaborative partners and management personnel.

Basis of Presentation and Interim Financial Statements
------------------------------------------------------

        The accompanying balance sheets at December 31, 1997 and June 30, 1998,
      and the statements of operations for the six months ended June 30, 1997
      and 1998, and the three months ended June 30, 1997 and 1998 and cash flows
      for the six months ended June 30, 1997 and 1998 include the consolidated
      financial statements of the Company. All intercompany balances and
      transactions have been eliminated in consolidation.

        The accompanying unaudited consolidated interim financial statements of
      the Company have been prepared by the Company pursuant to the rules and
      regulations of the Securities and Exchange Commission regarding financial
      reporting. Accordingly, they do not include all the information and
      footnotes required by generally accepted accounting principles for
      complete financial statements and should be read in conjunction with the
      Company's Annual Report on Form 10-K for the fiscal year ended December
      31, 1997. In the opinion of management, the accompanying financial
      statements include all adjustments (all of which are of a normal recurring
      nature) necessary for a fair presentation. The results of operations for
      the six months ended June 30, 1998 are not necessarily indicative of the
      results expected for the full year.

Use of Estimates
----------------

        The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amount of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the
      financial statements and the reported amounts of revenues and expenses
      during the reporting period. Actual results could differ from those
      estimates.

                                       5
<PAGE>


2. NET INCOME PER SHARE APPLICABLE TO COMMON STOCKHOLDERS:

        Net income per share applicable to common stockholders for all periods
      presented is calculated by dividing net income applicable to common
      stockholders by the weighted average number of shares outstanding. All
      shares and per share amounts have been adjusted retroactively to give
      effect to the equivalent number of shares received by the SDI stockholders
      in the EnSys Merger discussed in Note 3. This retroactive adjustment is
      reflected in the net income per share calculations and the Notes to the
      Consolidated Interim Financial Statements.

3. MERGERS AND ACQUISITIONS

Merger with EnSys Environmental Products, Inc.
----------------------------------------------

        On December 30, 1996, SDI merged with and into EnSys (the "Merger"). The
      Merger agreement provided that SDI common and preferred stockholders
      receive .7392048 shares of EnSys stock for each share of SDI Common or
      Preferred Stock. This resulted in the former SDI stockholders owning
      5,780,136 shares of EnSys Common Stock and 2,164,362 shares of EnSys
      Series A Convertible Preferred Stock or approximately 52% of the
      15,219,532 voting shares outstanding after the Merger. In addition to the
      Common and Preferred Stock noted above, SDI option and warrant holders
      received options and warrants to purchase .7818026 shares of EnSys Common
      Stock for each option or warrant held. Upon consummation of the Merger,
      SDI option and warrant holders received options and warrants for the
      purchase of 383,216 and 599,644 shares, respectively, of EnSys Common
      Stock. The difference in exchange ratios between stockholders and option
      and warrant holders is due to the stock preferences received by SDI's
      preferred stockholders upon exchange of their shares. The cost of
      receiving these preferences was shared by all SDI stockholders upon
      exchange of their shares, but was not borne by the SDI option and warrant
      holders.

        The Merger was accounted for as a purchase transaction with SDI as the
      acquiring company. Based on the $1.75 per share closing price of EnSys
      Common Stock on October 14, 1996, (date of transaction public
      announcement) the estimated total purchase price of EnSys was $16,133,
      which consists of the following: (i) the $12,731 market value of the
      outstanding shares of EnSys Common Stock (7,275,034 shares multiplied by
      $1.75 per share), (ii) the $328 fair value of the outstanding options and
      warrants to purchase EnSys Common Stock and (iii) estimated transaction
      costs of approximately $3,074. Since SDI is the acquiror for accounting
      purposes, the EnSys options and warrants are required to be valued for
      purchase accounting purposes as if they are additional consideration in
      the transaction. The valuation for EnSys options and warrants was provided
      by an investment banking firm using a traditional valuation approach. Of
      the approximately $3,074 of estimated transaction costs, approximately
      $457 relates to severance payments to former EnSys employees, $362 to
      facility termination and moving and $36 to employee relocation. In
      connection with the Merger, approximately 35 EnSys employees were
      terminated in December 1996.

                                       6
<PAGE>


        In connection with the Merger, all identifiable assets acquired by SDI,
      including intangible assets, were assigned a portion of the cost of the
      acquired company based on an independent valuation of EnSys' assets. Such
      allocation included the identification and evaluation of each development
      project to determine if technological feasibility had been achieved and if
      there were any alternative future uses. EnSys' primary research and
      development focus, the "One Step" assay, is currently under development.
      If such technology is not fully developed on a timely basis, the existing
      products may not be competitive enough to satisfy the technical
      requirements of a changing market or be cost effective despite
      demonstration of research prototypes by EnSys. The costs of developing the
      remaining technology for the "One Step" assay is significant. As a result
      of the substantial time and effort to produce the product in accordance
      with all functions and specification, it has been determined that
      technological feasibility has not been achieved. In addition, since
      alternative uses of this developmental technology do not exist, the costs
      of such technology have been charged to expense in accordance with SFAS
      No. 2, "Accounting for Research and Development Costs," ("SFAS No. 2").
      Based on the foregoing purchase price, the amount allocated to acquired
      research and development of $4,353 was charged to the statement of
      operations at the effective date of the Merger. The remaining amount of
      intangible assets of approximately $1,167 includes approximately $472 for
      developed technology, $55 for assembled workforce and $640 for goodwill.
      The intangible assets purchased are being amortized on a straight-line
      basis over 7-10 years. Amortization expense included in selling, general
      and administrative in the accompanying consolidated statement of
      operations, for the six months ended June 30, 1998 is approximately $68
      related to the merger.


Acquisition of Ohmicron Corporation
-----------------------------------

        On August 30, 1996, SDI acquired Ohmicron and certain of its wholly
      owned subsidiaries for 2,268,456 shares of common stock. Prior to the
      acquisition, Ohmicron spun-off certain assets and liabilities of another
      of its wholly-owned subsidiaries, Ohmicron Medical Diagnostics, Inc. The
      acquisition of Ohmicron was recorded as a purchase transaction accounting
      using the fair market value of the SDI common stock issued to Ohmicron.
      The total purchase price of approximately $4,503, including transaction
      and other costs of $533, has been allocated to the fair market value of
      the assets acquired and liabilities assumed. Based on the foregoing
      estimated purchase price, the amount allocated to acquired research and
      development of $3,913 was charged to the statement of operations at the
      time of the acquisition. In connection with the Ohmicron transaction, all
      identifiable assets acquired including intangible assets were assigned a
      portion of the cost of the acquired company based on an independent
      valuation of Ohmicron's assets. Such allocation included the evaluation of
      each development project identified to determine if technological
      feasibility had been achieved and if there were any alternative future
      uses. Based on this analysis, it has been determined that technological
      feasibility has not been achieved, and that alternative uses of this
      developmental technology do not exist. The cost of such technology has
      therefore been charged to expense in accordance with SFAS No. 2. The

                                       7
<PAGE>

      remaining amount of intangible assets of approximately $590 included
      approximately $384 for developed technology, $103 for assembled workforce
      and $103 for goodwill. The intangible assets purchased are being amortized
      on a straight-line basis over 7-10 years. Amortization expense included in
      selling, general and administrative in the accompanying consolidated
      statement of operations for the six months ended June 30, 1998 is
      approximately $38. The fair market value of the common stock issued to
      Ohmicron was based on several factors including recent equity
      transactions, as well as the subsequently negotiated Merger.

4. SHORT-TERM INVESTMENTS:

        The Company considers its investments as being available for sale in
      accordance with SFAS No. 115 "Accounting for Certain Investments in Debt
      and Equity Securities."

5. BASIC AND DILUTED INCOME PER SHARE:

        The company has adopted Statement of Financial Standards ("SFAS") No.
      128, "Earnings per Share," which requires dual presentation of basic and
      diluted earnings per share ("EPS") for complex capital structures on the
      face of the statement of operations. Basic EPS is computed by dividing net
      income or loss by the weighted-average number of common shares outstanding
      during the period. Diluted EPS is similar to basic EPS except that the
      effect of converting or exercising all potentially dilutive securities is
      also included in the denominator. The company's calculation of diluted EPS
      includes the effect of converting or exercising stock options and warrants
      into common shares.

6. COMPREHENSIVE INCOME:

        On January 1, 1998, the Company adopted Statement of Financial Standards
      ("SFAS") No. 130, "Reporting Comprehensive Income." SFAS No. 130
      establishes standards for reporting and display of comprehensive income or
      loss and its components in financial statements. For the periods
      presented, comprehensive income approximated the net income as presented
      in the accompanying Statements of Operations.

                                       8
<PAGE>

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

Forward Looking Statements

        The information included in this report on Form 10-Q contains certain
forward looking statements reflecting the current expectations of Strategic
Diagnostics Inc. and its subsidiaries (the "Company"). Investors are cautioned
that all forward looking statements involve risks and uncertainties that may
cause actual results to differ from those anticipated at this time. Such risks
and uncertainties include, without limitation, changes in demand for products,
delays in product development, inability to obtain necessary regulatory
approvals, modifications to development and sales relationships, the ability to
achieve anticipated growth, competition, seasonality, and other factors more
fully described in the Company's filings with the Securities and Exchange
Commission.

Background

        The Company is the entity resulting from the combination of EnSys
Environmental Products, Inc. ("EnSys"), Ohmicron Corporation ("Ohmicron"), TSD
BioServices ("TSD") and Strategic Diagnostics Inc. ("SDI").

        Since 1992, the Company and its predecessors have entered into research
and development agreements with multiple corporate partners that have led to the
introduction of various products to the water quality, industrial testing,
agricultural and other markets. These agreements generally provide that sales
and marketing costs associated with a new product are borne by the corporate
partner, and the Company has the manufacturing rights. In addition, the Company
currently sells directly other products that it has developed or acquired.


Results of Operations

Three Months Ended June 30, 1998 vs. June 30, 1997

        Total net revenues increased during the three-month period ended June
30, 1998 over the three month period ended June 30, 1997 by $1.7 million or 48%.
Product related sales increased $1.8 million or 57%, primarily as a result of
growth in the agricultural product category, from which revenues rose nearly
200% over the second quarter of 1997. Also contributing to the second quarter
increase were the sales during the quarter of pre-commercial Macra(R) Lp(a) test
kits to a new corporate partner pursuant to an exclusive distribution and supply
agreement.

        These increases more than offset a modest decline in the industrial
product category from the volume during the second quarter of 1997. This
decrease in this category was attributable to, among other things, price
pressures brought to bear by competitors with competing technologies such as
commercial laboratories. The Company expects that this price pressure will
continue and that it will have a larger adverse impact in the third quarter of
1998. Accordingly, the Company expects that the usual seasonal increase in
revenues will not materialize and that total revenues for the third quarter will
approximate those of the second quarter. While these trends are expected to
continue into the fourth quarter, the Company expects that the impact will be
offset by anticipated increases in sales of agricultural products which are
expected to grow with the introduction of the Genetically Modified Organism or
"GMO" food labeling regulations in Europe.

                                       9
<PAGE>


        Total operating expenses for the three month period ended June 30, 1998
increased by $1.3 million or 40% over the three month period ended June 30,
1997. Manufacturing costs increased $459,000 or 35%, in the second quarter of
1998 over the second quarter of 1997. This increase reflects the increased
expenses for materials, labor and overhead necessary to meet increased customer
demands. Research and development expenses increased $56,000 or 14% in the
second quarter of 1998 versus the second quarter of 1997. This increase was due
to higher costs of labor associated with additional staff required to meet both
internal and external customer demands. Selling, general and administrative
expenses increased $775,000 or 53% in the second quarter of 1998 versus the
second quarter of 1997. This increase was attributable to the higher levels of
personnel and other infrastructure necessary to support the higher volume of
revenues and a general increase in business activity during the quarter. The
Company expects a modest increase in manufacturing expenses in the third quarter
and for such expenses to remain steady thereafter. Research, selling and general
expenses are expected to approximate the levels expended in the second quarter
of 1998.

        Net interest income increased $31,000 or 52%. This increase was
attributable to a higher level of invested balances during the quarter ended
June 30, 1998, as compared to the quarter ended June 30, 1997.

        Net income increased $419,000 or 119% as a result of the foregoing.


Six Months Ended June 30, 1998 vs. June 30, 1997

        Total net revenues increased during the six month period ended June 30,
1998 over the six month period ended June 30, 1997 by $1.8 million or 29%.
Product related sales increased $1.9 million or 35%, primarily due to 140%
growth in the agricultural product category for the six months ended June 30,
1998 versus the six months ended June 30, 1997. Also contributing to the six
month increase in revenues was the shipment during the period of pre-commercial
Macra(R) Lp(a) test kits to a new corporate partner.

        These increases more than offset a modest decline in the industrial
product category during the six month period ended June 30, 1998 compared to the
prior year period. As described above, this decrease in the industrial category
is attributable to, among other things, price pressures brought to bear by
competitors with competing technologies such as commercial laboratories. The
Company's expectations concerning second half revenues are also described above.

                                       10
<PAGE>

                Total operating expenses for the six months ended June 30, 1998
increased by $1.5 million or 26% over the six months ended June 30, 1997.
Manufacturing costs increased $670,000 or 30%, in the six months ended June 30,
1998 versus the six months ended June 30, 1997. This increase reflects the
increased manufacturing activity during the period, needed to meet customer
demands. Research and development expenses decreased $61,000 or 7% in the six
months ended June 30, 1998 versus the six months ended June 30, 1997. This
decrease was due to lower costs of labor and consumable materials used during
the period. Selling, general and administrative expenses increased $909,000 or
33% in the six months ended June 30, 1998 versus the six months ended June 30,
1997. This increase was attributable to the higher levels of personnel and other
infrastructure necessary to support the increase in business activity during the
period.

        Net interest income increased $48,000 or 37%. This increase was
attributable to a higher level of invested balances during the six months ended
June 30, 1998, as compared to the six months ended June 30, 1997.

        Net income increased $330,000 or 72% as a result of the forgoing.

Liquidity and Capital Resources

        The Company's working capital, which consists principally of cash, cash
equivalents and marketable investments, increased $784,000 from December 31,
1997 to $10.2 million at June 30, 1998. Cash, cash equivalents and short-term
investments decreased $241,000 to $6.0 million. This decrease was primarily used
to purchase property and equipment ($333,000), increase accounts receivable
($1.2 million) and inventories ($270,000) and was net of increases attributable
to changes in other current assets and liabilities of $429,000, depreciation and
amortization of $299,000 and net income of $790,000.

        The Company believes that it has or has access to sufficient resources
to meet its operating requirements for the foreseeable future. The Company's
ability to meet its long-term working capital and capital expenditure
requirements will depend on a number of factors, including the success of the
Company's current and future products, the focus and direction of the Company's
research and development programs, competitive and technological advances,
future relationships with corporate partners, government regulation, the 
Company's marketing and distribution strategy and the success of the Company's 
plans to make future acquisitions. Accordingly, no assurance can be given that 
the Company will be able to meet the future liquidity requirements that may 
arise form these inherent and similar uncertainties.


                                       11
<PAGE>

                                    PART II

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

        The company held its annual meeting of shareholders on April 28, 1998.
        At the meeting, the following Class II Directors were elected:

        Directors                  Shares Voted for            Shares Withheld
        ---------                  ----------------            ---------------

        Richard J. Defieux         8,656,563                   30,172

        Robert E. Finnigan         8,646,413                   40,322

        Stephen O. Jaeger          8,656,763                   29,972



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits:

        27 Financial Data Schedule (in electronic format only).

(b)     Reports on Form 8-K

        No reports on Form 8-K were filed by the registrant during the quarter
        covered by this report.

                                       12
<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.



                           STRATEGIC DIAGNOSTICS INC
                           -------------------------
                                  (Registrant)

<TABLE>
<CAPTION>

Signature                                    Title                              Date
---------                                    -----                              ----
<S>                           <C>                                           <C>
/s/ RICHARD C. BIRKMEYER      President and Chief Executive Officer         August 11, 1998
-------------------------     (Principal Executive Officer)        
     Richard C. Birkmeyer     


/s/ ARTHUR A. KOCH, JR.       Vice President and Chief Financial Officer    August 11, 1998
--------------------------    (Principal Financial Officer)             
     Arthur A. Koch, Jr.      
</TABLE>

                                       13