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 March 31, 1999

[  ] 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    0-25552   

DUALSTAR TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

Delaware                                13-3776834
(State or other jurisdiction of 			     (I.R.S. Employer
incorporation or organization)			       Identification No.)

11-30 47th Avenue, Long Island City, NY 11101                               
(Address, including zip code of principal executive offices)

(718) 340-6655                                            
(Registrant's telephone number, including area code)

Not applicable                                           
(Former name, former address and former fiscal year, 
if changed since last report)

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                   .
                
APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's common 
stock, as of the latest practicable date.

Common Stock, $.01 Par Value --- 9,000,000 shares as of May 12, 1999












<PAGE>
Index

DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

        Condensed consolidated balance sheets - March 31, 1999 and 
        June 30, 1998

        Condensed consolidated statements of income - Three and nine 
        months ended March 31, 1999 and 1998

        Condensed consolidated statements of cash flows - Nine months 
        ended March 31, 1999 and 1998

        Notes to condensed consolidated financial statements - March 31, 1999


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


Part II. Other Information

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


Signatures



* No exhibits are included in this filing





<PAGE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS


                                            March 31,      June 30,
                                              1999           1998
                                          (unaudited)


ASSETS
Current assets:
  Cash                                    $ 1,300,901      $ 1,356,228
  Contracts receivable, net                20,447,388       19,321,514
  Retainage receivable                      4,967,592        4,574,252
  Costs and estimated earnings in excess 
    of billings on uncompleted contracts    3,446,864        1,507,471
  Deferred tax asset - current                178,000          178,000
  Prepaid expenses and sundry receivable      634,291          427,725
                                          ------------     ------------
Total current assets                       30,975,036       27,365,190
Property and equipment, net                 3,240,114        3,400,470
Other assets:
  Deferred tax asset - long-term              924,000          924,000
  Other                                     1,824,336        1,655,099
                                          ------------     ------------
Total assets                              $36,963,486      $33,344,759
                                          ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                        $18,429,556      $19,086,827
  Billings in excess of costs and 
    estimated earnings on uncompleted 
    contracts                               5,138,181        3,882,797
  Accrued expenses and other liabilities    3,645,034        4,030,890
                                          ------------     ------------
Total current liabilities                  27,212,771       27,000,514
Subordinated convertible note               2,500,000                -
Mortgage payable - long-term                  735,000          772,500
Other liabilities                             300,413          204,576
                                          ------------     ------------
Total liabilities                          30,748,184       27,977,590
                                          ------------     ------------
Contingencies
Shareholders' equity:
  Common stock                                 90,000           90,000
  Additional paid-in capital               14,995,836       14,995,836
  Deficit                                  (8,870,534)      (9,718,667)
                                          ------------     ------------
Total shareholders' equity                  6,215,302        5,367,169
                                          ------------     ------------
Total liabilities and shareholders' 
  equity                                  $36,963,486      $33,344,759   
                                          ============     ============
See notes to condensed consolidated financial statements

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

<TABLE>
                              For the Three Months         For the Nine Months  
                                 Ended March 31,              Ended March 31
                              1999         1998            1999         1998

<S>                           <C>          <C>             <C>          <C>                   
Contract revenues earned      $20,343,044  $23,242,049     $61,432,525  $72,126,401
Cost of revenues earned        17,072,331   21,250,759      54,139,026   65,311,089
                              ------------ ------------    ------------ ------------
Gross profit                    3,270,713    1,991,290       7,293,499    6,815,312
General and administrative 
  expenses                      2,190,752    1,887,410       6,445,366    5,988,986
                              ------------ ------------    ------------ ------------
Income before provision
  for income taxes              1,079,961      103,880         848,133      826,326
Provision for income taxes              -            -               -            -
                              ------------ ------------    ------------ ------------
Net income                    $ 1,079,961  $   103,880     $   848,133  $   826,326
                              ============ ============    ============ ============
Basic income per share:
  Net income per share             $0.12        $0.01           $0.09        $0.09
  Weighted average shares 
    outstanding                9,000,000    9,000,000       9,000,000    9,000,000

Diluted income per share:
  Net income per share             $0.10        $0.01           $0.08        $0.09
  Weighted average shares 
    outstanding               11,594,766    9,480,933      10,652,955    9,458,781
</TABLE>

See notes to condensed consolidated financial statements

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31,
(UNAUDITED)



                                            1999                 1998

Cash (used in) provided by operating 
  activities                                $(3,148,135)         $ 1,609,296
                                            ------------         ------------
Cash flows from investing activities:
  Acquisition of property and equipment        (250,989)            (732,302)
                                            ------------         ------------
Net cash used in investing activities          (250,989)            (732,302)
                                            ------------         ------------
Cash flows from financing activities:
  Proceeds from subordinated note             1,000,000                    -
  Proceeds from subordinated convertible 
    note                                      2,500,000                    -
  Principal payments on capital lease 
    obligations                                (118,703)             (43,589)
  Principal payments on mortgage                (37,500)             (30,000)
                                            ------------         ------------
Net cash provided by (used in) financing 
  activities                                  3,343,797              (73,589)
                                            ------------         ------------
Net (decrease) increase in cash                 (55,327)             803,405
Cash - beginning of period                    1,356,228            1,110,615
                                            ------------         ------------
Cash - end of period                         $1,300,901          $ 1,914,020 
                                            ============         ============

See notes to condensed consolidated financial statements

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

MARCH 31, 1999

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have 
been prepared in accordance with generally accepted accounting principles for 
interim financial information and with the instructions to Form 10-Q and 
Article 10 of Regulation S-X.  Accordingly, they do not include all of the 
information and footnotes required by generally accepted accounting 
principles for complete financial statements.  In the opinion of management, 
all adjustments (consisting of normal recurring accruals) considered 
necessary for a fair presentation have been included.  Operating results for 
the three- and nine-month periods ended March 31, 1999 are not necessarily 
indicative of the results that may be expected for the fiscal year ending 
June 30, 1999.  For further information, refer to the financial statements 
and footnotes thereto included in DualStar Technologies Corporation and 
Subsidiaries' Annual Report on Form 10-K for the fiscal year ended June 
30, 1998.

NOTE B - NET INCOME PER SHARE

Basic income per share is based on the average number of common shares 
outstanding during each period.  Diluted income per share is based on an 
assumption that the convertible subordinated debentures issued in November 
1998 were converted into common stock as of its issuance date at the stated 
conversion rate, with a corresponding elimination of related interest 
expense, net of any income taxes.  In addition, the dilutive effect of option 
and warrants is included in the dilutive computation. Convertible debt, 
options and warrants are not included in the computation when their effect is 
anti-dilutive.

The table below presents the information used to compute diluted income per 
share:


                        Three months ended           Nine months ended
                            March 31,                   March 31,
                        1999         1998            1999         1998
Numerator
  Net income - basic    $1,079,961   $  103,880      $  848,133   $  826,326
  Interest expense          46,875            -          62,500            -
                        -----------  -----------     -----------  -----------
  Net income - diluted  $1,126,836   $  103,880      $  910,633   $  826,326
                        ===========  ===========     ===========  =========== 
Denominator
  Basic shares           9,000,000    9,000,000       9,000,000    9,000,000
  Effect of convertible 
    debt                 1,791,000            -         796,000            -
  Effect of options        803,766      480,933         856,955      458,781
                        -----------  -----------     -----------  -----------
  Diluted shares        11,594,766    9,480,933      10,652,955    9,458,781
                        ===========  ===========     ===========  ===========

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

MARCH 31, 1999

NOTE C - SUBORDINATED CONVERTIBLE NOTE

On November 25, 1998, the Company sold to an investment group a subordinated 
convertible note in the principal amount of $2.5 million, due and payable on 
May 25, 2001. The note and unpaid interest bear an interest rate of 7.5% per 
annum and is payable semi-annually at the option of the Company.  Interest 
that is not paid is added to the principal.  In the event of default, the 
lender may declare the principal and unpaid interest immediately due and 
payable, and the outstanding amount will bear an interest rate of 12.5% per 
annum thereafter. 

The note is subordinated to the first mortgage of the Company's building and to
the rights of financial institutions lending money to the Company. 

During or at the maturity of the note, the lender has an option to convert the 
note into fully-paid and nonassessable shares of the Company's common stock. 
The number of shares issued upon the conversion shall not exceed 1,791,000 
shares, or 19.9% of the Company's outstanding shares on November 25, 1998. 
Initially, the conversion price is $1.40 per share and will be reset on the 
180th day following closing and every 90 days thereafter. The reset 
conversion price will be the lower of: (i) the average closing price of the 
Company's common stock on the 20 trading days immediately preceding the reset 
date or (ii) the initial conversion price of $1.40. The number of shares that 
can be received upon conversion will be adjusted proportionately for certain 
transactions, such as stock dividends and splits, and stockholder distributions.

If the number of shares issued upon the conversion times the conversion price is
less than the note principal and unpaid interest, the difference, at the 
Company's option, will be payable in cash or a one-year term note. The term 
note will be secured by the Company's assets and bear an interest rate of 
12.5% per annum. 

The Company may require the lender to convert the note into shares of the 
Company's common stock at the applicable conversion price in effect on such 
date if, at anytime after the 181st day following closing, the closing price 
of the common stock, for 20 consecutive days, is $3.00 or more per share.  
Also at the end of the term, at the option of the Company, in lieu of paying 
the lender the entire note amount, the Company shall have the right to force 
the conversion of 25% of the outstanding balance of the note amount into 
common stock.

Under the $2.5 million note agreement, the Company has certain restrictions 
on certain transactions, such as acquisition of additional indebtedness, 
related party transactions, transfer and disposition of assets, issuance of 
stock options, stock dividends and splits, and stock repurchases. 

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

MARCHR 31, 1999

NOTE C - (continued)

The Company also agreed to increase the total number of directors to eight. 
The investment group has the right to designate, and the Company will use its 
best efforts to cause the election of, a person reasonably acceptable to the 
Board of Directors to fill such newly created directorship.  On February 11, 
1999, the investment group's nominee was elected to the Company's Board of 
Directors. 

NOTE D - SUBORDINATED NOTE 

In July 1998, the Company sold to an investment group a $1 million 
subordinated note.  The note bears an interest rate of 10% per annum and is 
collateralized by the Company's building, subordinate to the building's first 
mortgage, in addition to the Company's cash and accounts receivable.  The 
note and any interest were due and payable on demand.

On November 25, 1998, in connection with the $2.5 million subordinated 
convertible note, referred to in Note C above, the maturity date of the $1 
million subordinated note was extended to November 25, 1999 and provisions 
relating to events of default were added.

NOTE E - STOCK OPTION PLAN

In March 1999, the Company granted a total of 979,000 stock options to various 
employees and members of the board of directors.   In general, the options 
have a term of seven years from the date of grant and vest over a period of 
two to five years.  The exercise price of each option was higher than the 
market price of the Company's stock on the date of grant.


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

General

DualStar Technologies Corporation, through its wholly owned subsidiaries, 
provides mechanical, electrical, electronic and control, environmental, 
security, telecommunications, direct broadcast satellite and cable 
television, and high-speed Internet access systems, services and solutions to 
a wide range of customers primarily in the New York Tri-State area.

When used in this Report, the words "intends," "expects," "plans," "estimates," 
"projects," "believes," "anticipates," and similar expressions are intended 
to identify forward-looking statements.  Except for historical information 
contained herein, the matters discussed and the statements made herein 
concerning the Company's future prospects are "forward-looking statements" 
within the meaning of Section 27A of the Securities Act and Section 21E of 
the Securities Exchange Act.  Although the Company believes that its plans, 
intentions, and expectations reflected in such forward-looking statements are 
reasonable, it can give no assurance that such plans, intentions and 
expectations will be achieved, and actual results could differ materially 
from forecasts and estimates.  Important factors that could cause actual 
results to differ materially include, but are not limited to, changes in the 
pricing environment for the Company's goods and services, regulatory or 
legislative changes, the Company's dependence on key personnel, the impact of 
Year 2000 issues which may be more significant than currently anticipated, 
and the Company's ability to manage growth, in addition to those risk factors 
set forth in DualStar Technologies Corporation and Subsidiaries' Annual 
Report on Form 10-K for the fiscal year ended June 30, 1998 and which speaks 
only as of the date thereof.  Many of the factors are beyond the Company's 
ability to control or predict. In addition, such forward-looking statements 
are necessarily based on assumptions and estimates that may be incorrect or 
imprecise and involve known and unknown risks and other facts.  Given these 
uncertainties, readers of this Report are cautioned not to place undue 
reliance upon such forward-looking statements.  The Company undertakes no 
obligation to publicly release any revisions to the forward-looking 
statements or reflect events or circumstances after the date of this document.  


Capital Resources and Liquidity

Cash balances at March 31, 1999 and June 30, 1998 were $1.3 million and $1.4 
million, respectively.  The Company's operations used $3.1 million of cash in 
the nine months ended March 31, 1999 primarily to pay trade payables.  The 
Company's operations provided $1.6 million of cash in the nine months ended 
March 31, 1998.  

In the nine months ended March 31, 1999 and 1998, the Company acquired 
capital assets of $0.2 million and $0.7 million, respectively.  Substantially 
all of the capital asset acquisitions represented investments in 
telecommunications infrastructure systems for buildings in return for rights 
to provide telephone, television and Internet services to the buildings' 
residents.

In July and November 1998, the Company entered into a $1 million subordinated 
note agreement and a $2.5 million subordinated convertible note agreement, 
respectively, with an investment group. 


Year 2000 Compliance

The Year 2000 ("Y2K") issue is the result of computer programs using a 
two-digit format, as opposed to four digits, to indicate the year.  Such 
computer systems will be unable to interpret dates beyond the year 1999, 
which could cause a system failure or other computer errors, leading to 
disruptions in operations.  In 1998, the Company developed a three-phase 
program for Y2K compliance.  Phase I is the identification of those systems 
through which the Company has exposure to Y2K issues.  Phase II is the 
development and implementation of action plans to be Y2K compliant in all 
areas by the end of June 1999.  Phase III, to be completed by September 1999, 
is the final testing of each major area of exposure to ensure compliance.  
The Company has identified two major areas determined to be critical for 
successful Y2K compliance: (1) financial and informational system 
applications, and (2) system and software suppliers.

The Company, in accordance with Phase I of the program, conducted an internal 
review of its systems and contacted suppliers to determine major areas of 
exposure to Y2K issues.  In the financial and informational systems area, 
a number of applications have been identified as Y2K compliant due to their 
recent implementation.  The Company's core financial and reporting systems 
have been upgraded to be Y2K compliant.  The final testing of the upgraded 
systems is scheduled to be completed by August 1999 to ensure Y2K compliance.  
The Company's non-compliant informational systems are scheduled for 
replacement by the end of June 1999 and are scheduled to be tested for 
compliance by September 1999.  The Company believes the currently estimated 
replacement and labor costs to bring the core financial, reporting and 
informational system applications into compliance should not have a material 
adverse effect on the Company's financial condition in fiscal 1999 and 2000, 
although there can be no assurance of this.

The Company has contacted its major suppliers with regards to Y2K compliance.  
All of these suppliers state that they are, or intend to be, Y2K compliant by 
January 1, 2000.  There can be no assurance of such a result and the Company 
cannot predict the outcome if the suppliers do not become Y2K compliant by 
January 1, 2000.


<PAGE>
Results of Operations

Contract revenues decreased 12.5% in the three months ended March 31, 1999 to 
$20.3 million, down $2.9 million from the comparable period of 1998.  
Contract revenues decreased 14.8% in the nine months ended March 31, 1999 to 
$61.4 million, down $10.7 million from the comparable period in 1998.  The 
decreases were due primarily to the result of the Company's marketing plan of 
being more selective in bidding new contracts in order to meet certain 
profitability criteria.

Gross profit increased $1.3 million in the three months ended March 31, 1999 
to $3.3 million, from the comparable period in 1998.  Gross profit increased 
$0.5 million in the nine months ended March 31, 1999 to $7.3 million from the 
comparable period in 1998.  The gross profit margins were 16.1% and 8.6% for 
the three months ended March 31, 1999 and 1998, respectively. The gross 
profit margins were 11.9% and 9.4% for the nine months ended March 31, 1999 
and 1998, respectively.  The increases in gross profit and gross margin were 
primarily due to the results of the implementation of the Company's marketing 
plan to emphasize contracts that return higher profit margins. 

General and administrative expenses increased $0.3 million in the three 
months ended March 31, 1999 to $2.2 million from the comparable period in 
1998.  General and administrative expenses increased $0.5 million in the nine 
months ended March 31, 1999 to $6.4 million from the comparable period in 
1998.  The increases were due primarily to the additional interest costs 
incurred for the notes the Company issued in July and November 1998 and to 
increases in payroll costs.  As a percentage of revenue, general and 
administrative expenses increased to 10.8% for the three months ended March 
31, 1999 from 8.1% for the comparable period in 1998, and 10.5% for the nine 
months ended March 31, 1999 from 8.3% for the comparable period in 1998.  The 
increases were due primarily to the decrease in contract revenues.


PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

No reports on Form 8-K were filed during the three-month period ended March 
31, 1999


<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.



			               	DualStar Technologies Corporation           
  

Date: May 14, 1999            By: GREGORY CUNEO
                                  Gregory Cuneo
					                             Chairman of Board, President
					                             and Chief Executive Officer


Date: May 14, 1999            By: ROBERT  BIRNBACH		
                                  Robert Birnbach
                      					      	Vice President and Chief Financial Officer


Date: May 14, 1999            By: JOSEPH CHAN			
                                  Joseph Chan
					      	                      Vice President and Chief Accounting Officer




</TEXT