FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


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


For Quarter Ended March 31, 1999

Commission File No. 1-5562

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

          New York                                        04-2151861     
(State or other jurisdiction of                      (I.R.S. Employer
 incorporation or organization)                      Identification No.)


1601 Trapelo Road, Waltham, Massachusetts                   02451   
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code:   (781)  890-5655


       _________________________________________________________              
(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 _____


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

           Class                            Outstanding at May 17, 1999
Common Stock, $2.50 par value                  10,187,126 shares





<PAGE>2

                   KOLLMORGEN CORPORATION AND SUBSIDIARIES


                                      INDEX



                                                                 Page No.


PART I - Financial Information

        Unaudited Consolidated Statements of                          3
               Operations for the Three Months Ended
               March 31, 1999 and 1998

        Unaudited Consolidated Balance Sheets                         4
               as of March 31, 1999 and
               December 31, 1998

        Unaudited Consolidated Statements of Cash Flows               5
               for the Three Months Ended March 31, 1999
               and 1998

        Notes to unaudited Consolidated Financial Statements          6

        Management's Discussion and Analysis of Financial             8
               Condition and Results of Operations



PART II - Other Information                                           11




<PAGE>3


<TABLE>
                                       PART I - FINANCIAL INFORMATION

                                   KOLLMORGEN CORPORATION AND SUBSIDIARIES
                                    Consolidated Statements of Operations
                               (Dollars in thousands, except per share amounts)
                                               (Unaudited)
<CAPTION>

                                                                                            March 31,                     March 31,
                                                                                                 1999                         1998
                                                                                            ---------                     ---------
<S>                                                                                         <C>                           <C>
Net Sales                                                                                   $ 59,471                      $ 56,793
Cost of Sales                                                                                 41,878                        39,666
                                                                                            ---------                    ---------
Gross profit                                                                                  17,593                        17,127
                                                                                            ---------                    ---------
Selling and marketing expense                                                                  6,135                         5,619
General and administrative expense                                                             6,452                         5,122
Research and development expense                                                               3,053                         3,181
Impairment of goodwill and assets held for sale                                                    -                         2,733
Tender offer costs                                                                                 -                         1,273
                                                                                            ---------                    ---------
Income (loss) from operations                                                                  1,953                          (801)
Other income (expense):
        Interest expense                                                                        (901)                         (834)
        Interest income                                                                           74                           377
        Intellectual property license, net of expenses                                             -                        21,217
        Other, net                                                                             1,178                        (8,336)
                                                                                            ---------                    ---------
Income before income taxes and minority interest                                               2,304                        11,623
Provision for income taxes                                                                      (805)                       (6,072)
                                                                                            ---------                    ---------
Income before minority interest                                                                1,499                         5,551
Minority interest                                                                                135                             9
                                                                                            ---------                    ---------
Net income                                                                                  $  1,634                     $   5,560
                                                                                            =========                    =========
Earnings per common share:
   Basic                                                                                    $   0.16                     $    0.55
   Diluted                                                                                  $   0.16                     $    0.52
Number of shares used in calculating earnings per common share:
   Basic                                                                                  10,155,809                    10,038,399
   Diluted                                                                                10,448,249                    11,598,545





<FN>
See accompanying notes to unaudited consolidated financial statements.
</FN>
</TABLE>


<PAGE>4


<TABLE>
                                KOLLMORGEN CORPORATION AND SUBSIDIARIES
                                      Consolidated Balance Sheets
                                            (In thousands)
                                                (Unaudited)
<CAPTION>
                                                    ASSETS
                                                                                              March 31,                 December 31,
                                                                                                  1999                         1998
                                                                                              ---------                 -----------
<S>                                                                                           <C>                       <C>
Current assets:
        Cash and cash equivalents                                                             $  7,304                  $   13,086
        Accounts receivable (net of reserve of
          $594 in 1999 and $581 in 1998)                                                        43,504                       48,927
        Recoverable amounts on long-term contracts                                               4,496                        2,597
        Inventories                                                                             27,861                       27,838
        Prepaid expenses and other current assets                                                2,790                        1,885
                                                                                              ---------                    ---------
Total current assets                                                                            85,955                       94,333

Property, plant and equipment, net                                                              31,290                       30,809
Goodwill, patents and other intangible assets,net                                               19,299                       20,420
Deferred income taxes                                                                            9,389                        9,448
Other assets                                                                                    13,766                       13,623
                                                                                              ---------                    ---------
Total assets                                                                                  $159,699                   $  168,633
                                                                                              =========                    =========
                                LIABILITIES and SHAREHOLDERS' EQUITY

Current liabilities:
        Accounts payable                                                                    $   13,675                   $   14,336
        Income taxes payable                                                                     4,945                        6,733
        Accrued liabilities                                                                     23,555                       28,110
        Line of credit                                                                           6,907                        9,270
        Current portion of long-term debt                                                        2,365                        2,419
                                                                                              ---------                    ---------
Total current liabilities                                                                       51,447                       60,868

Long-term debt                                                                                  35,439                       36,120
Other liabilities                                                                               15,064                       14,943
Minority interest                                                                                   37                          175

Shareholders' equity:
        Common stock                                                                            26,940                       26,932
        Additional paid-in capital                                                              13,216                       12,882
        Retained earnings                                                                       24,203                       22,772
        Accumulated other comprehensive income                                                  (1,287)                        (270)
        Less: common stock in treasury, at cost                                                 (5,360)                      (5,789)
                                                                                              ---------                    ---------
Total shareholders' equity                                                                      57,712                        56,527
                                                                                              ---------                    ---------
Total liabilities and shareholders' equity                                                   $ 159,699                     $ 168,633
                                                                                              =========                    =========
<FN>
See accompanying notes to unaudited consolidated financial statements.
</FN>
</TABLE>


<PAGE>5

<TABLE>
                              KOLLMORGEN CORPORATION AND SUBSIDIARIES
                               Consolidated Statements of Cash Flows
                                          (In thousands)
                                            (Unaudited)
<CAPTION>

                                                                                                         For the Three 
                                                                                                    Months Ended March 31,
                                                                                                 --------------------------------
                                                                                                    1999                   1998
                                                                                                 ---------              ---------
<S>                                                                                              <C>                    <C>
Cash flows from operating activities:
Net income                                                                                       $ 1,634                $ 5,560
Adjustments to reconcile income to
  net cash provided by (used in) operating activities:
      Depreciation                                                                                 1,530                  1,274
      Amortization                                                                                   430                    417
      Impaired asset charge                                                                            -                  2,733
      Deferred income taxes                                                                            -                 (3,572)
      Minority interest and other non-cash expenses                                                 (255)                   231
Changes in operating assets and liabilities:
      Accounts receivable                                                                          2,329                 (1,708)
      Recoverable amounts on long-term contracts                                                  (1,899)                (1,936)
      Inventories                                                                                   (802)                (1,087)
      Prepaid expenses                                                                              (929)                  (379)
      Accounts payable and accrued liabilities                                                    (5,948)                12,401
      Other deferred expenses                                                                       (154)                 1,258
                                                                                                 ---------             ---------
        Net cash provided by (used in) operating activities                                       (4,064)                15,192
                                                                                                 ---------             ---------
Cash flows from investing activities:
      Capital expenditures                                                                        (1,880)                (1,924)
      Other                                                                                          (44)                   111
                                                                                                 ---------             ---------
        Net cash used in investing activities                                                     (1,924)                (1,813)
                                                                                                 ---------             ---------
Cash flows from financing activities:
      Borrowings (repayments) under credit lines, net                                                112                    284
      Proceeds from common stock issued from treasury                                                738                     42
      Borrowings (repayments) of long-term debt                                                     (325)                   358
      Dividends paid                                                                                (203)                  (201)
                                                                                                 ---------             ---------
        Net cash provided by financing activities                                                    322                    483
                                                                                                 ---------             ---------
      Effect of exchange rate changes on cash                                                       (116)                  (144)
                                                                                                 ---------             ---------
      Net decrease in cash and cash equivalents                                                   (5,782)               (13,718)
      Cash and cash equivalents at beginning of period                                            13,086                 14,854
                                                                                                 ---------             ---------
      Cash and cash equivalents at end of period                                                 $ 7,304                $28,572
                                                                                                 =========             =========


<FN>
See accompanying notes to unaudited consolidated financial statements.
</FN>
</TABLE>


<PAGE>6

                          KOLLMORGEN CORPORATION AND SUBSIDIARIES

             Notes to Unaudited Consolidated Financial Statements
                   (In thousands, except per share amounts)


1.      The accompanying unaudited consolidated financial statements include the
        accounts of Kollmorgen Corporation and its subsidiaries (the "Company").

2.      In the opinion of management, the unaudited consolidated financial
        statements included herein contain all adjustments, consisting only of
        normal recurring adjustments necessary to present fairly the Company's
        financial condition at March 31, 1999, the results of operations for 
        the three-month period ended March 31, 1999 and 1998, and the cash 
        flows for the three-month periods ended March 31, 1999 and 1998.  The 
        balance sheet at December 31, 1998 was derived from the audited 
        financial statements as of December 31, 1998.  The results of 
        operations for interim periods are not necessarily indicative of the 
        results to be expected for the full year.  See Management's Discussion 
        and Analysis of Financial Condition and Results of Operations for 
        additional information.  These interim financial statements should be 
        read in conjunction with the Company's Annual Report on Form 10-K for 
        the year ended December 31, 1998.

3. Inventories consist of the following:

<TABLE>

                                            March 31,             December 31,
                                                1999                  1998
                                            ---------             -----------
<S>                                         <C>                    <C>
    
                Raw materials               $ 13,776               $ 12,187
                Work in process                8,394                  8,073
                Finished goods                 5,691                  7,578
                                            --------              ---------
                                            $ 27,861               $ 27,838
                                            ========              =========


4. The Company's comprehensive earnings were as follows:
                                                                     For the
                                                               Three Months Ended
                                                                   March 31,
                                                                 ----------------
                                                                   1999     1998
                                                                 -------  -------
        Net income                                               $ 1,634  $ 5,560
        Foreign currency translation
         adjustment (net of tax provision of
         $450 and $277 in 1999 and 1998, respectively)              (837)    (615)
                                                                 -------  -------
        Comprehensive income                                     $   797  $ 4,945
                                                                 =======  =======
</TABLE>

5.      The following table includes certain financial  information  relating to
        each of the Company's segments in the first quarter of 1999 and 1998:

<TABLE>
                                         Industrial        Aerospace
                                             and              and           Corporate,
                                         Commercial         Defense          Interest       Special
                                            Group            Group          And Other        Items      Total
<S>                                         <C>              <C>              <C>           <C>         <C>    
 
1999
Sales                                       $33,557          $25,914          $    -        $    -      $59,471
Profit (loss) before tax                      1,498            2,804          (1,998)            -        2,304
1998
Sales                                        31,374           25,419               -             -       56,793
Profit (loss) before tax                      1,574            2,378          (1,115)        8,786       11,623

</TABLE>

<PAGE>7



6.      In June 1998, the Financial  Accounting  Standards Board ("FASB") issued
        Statement  of  Financial  Accounting  Standard  No.  133  ("SFAS  133"),
        "Accounting  for Derivative  Instruments and Hedging  Activities"  which
        must be adopted for fiscal years  beginning after June 15, 1999. The new
        standard  establishes  accounting and reporting standards for derivative
        instruments,  including certain derivative instruments embedded in other
        contracts and for hedging activities.  The Company expects to adopt SFAS
        133 by January 1, 2000.  Had the  Company  implemented  SFAS 133 for the
        current reporting period there would have been no material effect on the
        financial statements.

7.      Basic EPS  excludes  the  dilutive  effect of  common  stock  equivalent
        securities   and  is   computed   by   dividing   net   income   by  the
        weighted-average  number of common  shares  outstanding  for the period.
        Diluted  EPS  reflects  the  potential  dilution  that  could  occur  if
        securities or other  instruments to issue common stock were exercised or
        converted  into common stock or resulted in the issuance of common stock
        that then shared in the earnings of the entity. A reconciliation between
        basic and diluted EPS is as follows:
                                                           For the
                                                      Three Months Ended
                                                           March 31,
                                                        ---------------
                                                        1999     1998
                                                      -------  -------
        Net income - basic                            $ 1,634  $ 5,560
        Effect of dilutive securities:
         Convertible debentures                             -      476
                                                      -------  -------
        Net income - diluted                          $ 1,634  $ 6,036

        Shares used in net income
         per share - basic                             10,156   10,038
        Effect of dilutive securities:
         Stock options                                    292      605
         Convertible debentures                             -      956
                                                      -------  -------
        Shares used in net income
         per share - diluted                           10,448   11,599

        Net income per share-basic                      $0.16    $0.55
        Net income per share-diluted                    $0.16    $0.52

        During the first quarter of 1999,  options to purchase 545,000 shares of
        common stock with exercise prices ranging from $17.31 to $20.94 and with
        expiration dates ranging up to May 26, 2008 were  outstanding,  but were
        not  included in the  computation  of diluted  EPS because the  options'
        exercise prices were greater than the average market price of the common
        shares.   Additionally,   904,000  common   equivalent   shares  of  the
        convertible subordinated debentures were not included in the diluted EPS
        calculation as a result of their antidilutive effect.

        During  the first  quarter of 1998,  there  were no options to  purchase
        common stock that had an exercise  price greater than the average market
        price of the common shares. Therefore, no options were excluded from the
        computation of diluted EPS.

8.      Effective May 1, 1999 the Company purchased the assets of New England 
        Affiliated Technologies (NEAT), a leader in the application of 
        high-performance motion control for advanced positioning systems, from 
        Instrument Industries, Inc.  NEAT has a 25-year history in the design 
        and production of single-axis stages, x-y tables, integrated 
        workstations, and air-bearing slides for industry applications where 
        precise motion is critical.  These products can be found in 
        applications such as digital image setters, semiconductor inspection 
        tools, and DNA analyzing equipment serving the graphic arts, 
        biotechnology and instrumentation, disk drive, and semiconductor 
        manufacturing markets.  The company has approximately 100 employees at 
        its manufacturing facility in Lawrence, MA. and recorded sales of 
        approximately $13 million in 1998.

<PAGE>8



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



        For the three  months  ended  March 31,  1999,  the Company had sales of
$59.5  million and net income of $1.6  million,  equal to $0.16 per common share
(diluted). These results compare with sales for the three months ended March 31,
1998 of $56.8  million and net income of $5.6 million  equal to $0.52 per common
share  (diluted).  Excluding the impact of the Special  Items in 1998  discussed
below,  the  Company's net income for the three months ended March 31 would have
been $1.6 million  equal to $0.16 per share  (diluted) for 1999 and $2.0 million
equal to $0.19 per share (diluted) for 1998.

        During the first quarter of 1998, the Company  announced the first major
license  agreement for its pioneering  electronic  motion control patents in the
amount of $27.2  million,  which,  after legal and other  expenses,  resulted in
income of $21.2 million. In connection with its patent enforcement  program, the
Company has engaged  counsel to continue  enforcement  of the  Company's  patent
estate,  and  accordingly,  has recorded a charge of $6.8 million to cover legal
expenses and other related costs.  The Company recorded a pre-tax charge of $2.7
million,  primarily  relating  to the  write-down  of  goodwill  from  its  1994
acquisition of the assets of Sperry  Marine.  Also in the first quarter of 1998,
the Company  incurred  $1.3 million of expenses in  conjunction  with the tender
offer for Pacific Scientific Company. Finally, the Company elected to change the
vesting method for post-retirement  medical insurance  benefits,  resulting in a
charge of $1.6 million.  The total of these items had a positive  impact in 1998
of $8.8 million to the reported  income  before  income taxes of the Company and
$3.6 million to the net income of the Company.

        Collectively,  the items  above  from the first  quarter of 1998 will be
referred to as the "Special Items" to provide for comparative  discussion of the
Company's results on a consistent basis.

                              RESULTS OF OPERATIONS

     The following  table  reflects the results of operations  for the Company's
two  operating  segments  excluding  the  impact  of  the  Special  Items.  This
comparison  provides  a  consistent  basis by which to view the  results  of the
Company's two operating segments (in millions):

                                                           For the
                                                      Three Months Ended
                                                           March 31,
                                                        ----------------
                                                         1999     1998
                                                        -------  -------
        Industrial and Commercial Group:
               Bookings                                 $  37.3  $  37.0
               Sales                                       33.6     31.4
               Profit before tax                            1.5      1.6
        Aerospace and Defense Group:
               Bookings                                 $  42.4  $  28.1
               Sales                                       25.9     25.4
               Profit before tax                            2.8      2.4



1999 versus 1998

        Profit before tax for the three months ending March 31, 1999 decreased
to $2.3 million from $11.6 million in the same period of the  prior  year.
Excluding the Special  Items in 1998  discussed  above,  profit before tax would
have been $2.3 million and $2.8  million for the three  months  ending March 31,
1999 and 1998, respectively.

<PAGE>9



        The Company's  sales  increased  $2.7 million or 5% for the three months
ended March 31, 1999 as compared to the same period a year ago.  The  Industrial
and Commercial  Group's revenue  increased to $33.6 million for the three months
ended  March 31, 1999 from $31.4  million or 7% as compared to the three  months
ended March 31, 1998. The increase reflects the acquisition of Magnedyne in July
1998 and increased sales of the Company's engineering consulting business. These
increases  offset  declines in the  Industrial  and  Commercial  Group's  motion
control businesses due to the continued slowdown in the semiconductor  equipment
and electronics  sectors and the impact of the Asian economy on the group's high
volume  business.  Sales to the Aerospace and Defense  Group's  markets of $25.9
million for the three months ended March 31, 1999  represented an increase of 2%
over the $25.4 million of sales in same period of the prior year.

        The  Company's  overall  gross  margin  as a percent  of sales  remained
relatively  constant at  approximately  30% for the three months ended March 31,
1999 and 1998. The Industrial and Commercial Group had a decline in gross margin
as a percent of sales to 28% for the first quarter of 1999 from 30% in 1998. The
decline in margin was due to additional overhead costs primarily relating to the
Magnedyne  acquisition  without  corresponding  revenue increases by the group's
motion  control  business.  The  Aerospace  and Defense Group had an increase in
gross margin as a percent of sales from 30% for the first quarter of 1998 to 31%
in 1999.

        Sales and  marketing  expenses  increased  to $6.1  million in the first
quarter of 1999 as  compared to $5.6  million  for the same period in 1998,  but
remained consistent at 10% of sales for both periods.

        General and administrative expenses were $6.5 million or 11% of sales in
the first  quarter of 1999 as  compared  to $5.1  million or 9% of sales for the
same period in 1998. This increase reflects insurance settlements and credits in
the first quarter of 1998, the effect of the inclusion of Magnedyne,  and volume
increases at the Company's engineering consulting business.

        Research and  development  expenses were $3.1 million or 5% of sales for
the first  quarter of 1999 as compared  with $3.2 million or 6% of sales for the
same period in the prior year.

Interest and Taxes

        Interest  expense was $0.9  million and $0.8 million for the three month
periods ending March 31, 1999 and 1998, respectively.

        The Company  recorded a provision  for taxes of 35% in the first quarter
of 1999.  The tax rate for the three months  ended March 31, 1998 was 52%.  That
rate reflected the impact of the patent licensing income,  recorded in the first
quarter of 1998,  taxable in the U.S.  and  subject  to Japan  withholding  tax.
Excluding this Special Item,  the Company's  effective tax rate was 31% in 1998.
The  Company's  effective  tax rates in both 1999 and  1998,  excluding  Special
Items,  are  less  than the  statutory  U.S.  tax rate as some of the  Company's
foreign  subsidiaries operate in countries where the statutory rate is less than
the U.S.
rate, or the Company is operating under a tax holiday agreement.

        Bookings increased $14.6 million or 23% during the first three months of
1999 as compared to the same  period in the prior year.  The  increase is due to
the improved  bookings in the Aerospace and Defense Group,  which included a $22
million submarine periscope order.

                     LIQUIDITY AND CAPITAL RESOURCES

        The  Company's  consolidated  cash  position  decreased  by $5.8 million
during the quarter of 1999.  Cash used for  operations  was $4.1  million,  $1.9
million was used for investing  activities,  and financing  activities  provided
$0.3 million.

        The Company used $8.1 million to fund working capital requirements. This
was  principally  due to scheduled  payments for taxes and  compensation,  and a
settlement concerning a business disposed in 1996.

        The Company's financing  activities provided $0.3 million of cash during
the first quarter of 1999.  Common dividends paid were $0.2 million or $0.02 per
common share for the three months ended March 31, 1999.

        The  Company  believes  that  it  can  generate   sufficient  cash  from
operations and its current line of credit to finance its cash  requirements  for
capital expenditures, sinking fund payments, potential acquisitions, and working
capital needs for the next twelve months.

<PAGE>10



     Year 2000 Issue

     The year 2000 issue is the result of computer  programs having been written
using two digits,  rather than four, to define the  applicable  year. Any of the
Company's  computers,   computer  programs,   manufacturing  and  administration
equipment or products  that have  date-sensitive  software may  recognize a date
using "00" as the year 1900 rather than the year 2000.  If any of the  Company's
systems or  equipment  that have  date-sensitive  software  use only two digits,
system failures or miscalculations may result causing disruptions of operations,
including,  among other things, a temporary inability to process transactions or
send and receive  electronic data with third parties or engage in similar normal
business activities.
     During 1998, the Company formed an ongoing  internal review team to address
the year 2000 issue that encompasses  operating and administrative  areas of the
Company.  A team of global  professionals  has been engaged in a process to work
with Company personnel to identify and resolve significant year 2000 issues in a
timely manner. In addition,  executive  management regularly monitors the status
of the Company's year 2000 remediation plans. The process includes an assessment
of issues and development of remediation plans, where necessary,  as they relate
to internally used software,  computer hardware and use of computer applications
in the Company's  manufacturing processes and products. In addition, the Company
is engaged in assessing the year 2000 issue with significant suppliers.

     The assessment process has been completed at the Company's U.S. operations.
With respect to the Company's international  operations,  the assessment process
has been  completed for computer  software and hardware  information  technology
systems  used  internally  by the  Company.  The  assessment  process at several
international  operations for internally used  manufacturing and  administrative
equipment is expected to be completed in April 1999. In addition, the Company is
finalizing  its assessment of  significant  suppliers at all major  locations to
determine  the  extent to which the  Company  is  vulnerable  to third  parties'
failure to remediate  their own year 2000 issues.  Finally,  related to products
sold by the Company,  the Company  believes it has no exposure to  contingencies
related to year 2000 issues.

     During the past three  years,  as part of business  modernization  programs
intended  to reduce  cycle  time and  improve  profitability,  the  Company  has
purchased   Enterprise  Resource  Planning  ("ERP")  Systems  for  some  of  its
operations  in the U.S. and other  international  locations,  which the software
vendors  have  indicated  are  year  2000  compliant.  The  Company  is  in  the
implementation  phase for these systems and other  ancillary  financial  systems
with many sites  expected to achieve full  implementation  before  September 30,
1999. Some sites are not expected to implement new ERP systems before the end of
1999 and accordingly, the Company has begun making the current systems year 2000
compliant.  The cost of making those adaptations are not expected to be material
and will be expensed  in the period  incurred.  It is expected  that the Company
will be in full compliance  with its internal  systems before the year 2000. If,
due to unforeseen circumstances, the implementation is not completed on a timely
basis,  the year 2000  could  have a material  impact on the  operations  of the
Company.


     The Euro

     On January 1, 1999,  eleven of fifteen  member  countries  of the  European
Union  established  fixed  conversion  rates between their  existing  currencies
("legacy currencies") and one common currency,  the euro. The euro now trades on
currency exchanges and may be used in business  transactions.  The conversion to
the euro  eliminates  currency  exchange  rate  risk  among  the  eleven  member
countries.  Beginning in January 2002, new euro-denominated bills and coins will
be issued.  The  Company's  business  units  significantly  affected by the euro
conversion  have  established  plans to address  the  issues  raised by the euro
currency conversion, and expect to be substantially complete with these plans by
the year 2000.  These issues include,  among others,  the need to adapt computer
and  financial  systems,  business  processes  and  equipment,  and the  need to
accommodate euro-denominated  transactions and the impact of one common currency
on product pricing, taxation and governmental and legal regulations. The Company
does not expect the system and equipment  conversion costs to be material to its
financial  condition,  results of  operations  or cash  flows.  Due to  numerous
uncertainties,  the Company cannot reasonably estimate the effects currency will
have on pricing and the resulting  impact,  if any, on its  financial  condition
results of operations or cash flows.

<PAGE>11



     Forward Looking Information

Certain  statements in this report are "forward looking  statements"  within the
meaning of the Private  Securities  Litigation  Reform Act of 1995.  All forward
looking statements involve risks and uncertainties. In particular, any statement
contained herein, in press releases, written statements or other documents filed
with the Securities and Exchange Commission,  or in the Company's communications
and  discussions  with  investors  and analysts in the normal course of business
through meetings,  phone calls and conference calls,  regarding the consummation
and benefits of future  acquisitions,  as well as  expectations  with respect to
future sales, operating efficiencies and product expansion, are subject to known
and unknown risks, uncertainties and contingencies, many of which are beyond the
control of the Company.  These factors may cause actual results,  performance or
achievements to differ  materially  from  anticipated  results,  performances or
achievements. Factors that might affect such forward looking statements include,
but are not limited to, overall economic and business conditions; the demand for
the  Company's  goods and services;  the timing of and market  acceptance of new
products;  competitive factors in the industries and geographic markets in which
the Company competes;  changes in tax requirements  (including tax rate changes,
new tax laws and revised tax law  interpretations);  interest rate  fluctuations
and  other  capital  market   conditions,   including   foreign   currency  rate
fluctuations;  economic and political  conditions in international  markets; the
ability to achieve  anticipated  synergies  and other cost savings in connection
with  acquisitions;  the  timing,  impact  and  other  uncertainties  of  future
acquisitions;  and the  Company's  ability  and its  customers'  and  suppliers'
ability to replace,  modify or upgrade computer  programs in order to adequately
address the year 2000 issue. Any forward looking statements should be considered
in light of these factors.


                           PART II - OTHER INFORMATION

Item 5.  Other Information

     Effective May 1, 1999, the Company acquired  substantially all of
the  assets  and  assumed   certain   liabilities  of  New  England   Affiliated
Technologies, Inc. located in Lawrence Massachusetts. The Company announced this
acquisition in a press release dated April 26, 1999

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits - Listed below are the exhibits filed with this report.

               27      Financial Data Schedules.

               99 Press  release  dated April 26, 1999  reporting  on the
               acquisition of New England Affiliated Technologies, Inc.


     (b)  Reports on Form 8-K - none

<PAGE>12


                                         SIGNATURES


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



                                          KOLLMORGEN CORPORATION


                                          By:   /s/  Robert J. Cobuzzi       
                                              Robert J. Cobuzzi, Senior Vice
                                                   President, Treasurer and
                                                   Chief Financial Officer


Date:   May 17, 1999


<PAGE>13



     Kollmorgen will Acquire New England Affiliated Technologies;
          Adds Capability for Complete Positioning Systems

WALTHAM, Mass. (April 26, 1999) -- Kollmorgen Corporation (NYSE: KOL) announced 
today that it has agreed to purchase New England Affiliated Technologies, a 
leader in the application of high-performance motion control for advanced 
positioning systems. Based in Lawrence, Mass., NEAT has a 25-year history in 
the design and production of single-axis stages, x-y tables, integrated 
workstations, and air-bearing slides for industry applications where precise 
motion is critical.

"This is a perfect fit for Kollmorgen," said Gideon Argov, Kollmorgen's 
chairman and chief executive. "NEAT serves the next rung up the value ladder. 
They have the application experience and skills to combine our motors, drives, 
and servo systems with tables, slides, and workstations into precise 
positioning systems perfectly suited to the customer's need, especially in the 
field of linear motion control."

NEAT builds a range of products that integrate motion control components into a 
more complete system for precisely positioning a part or a product. The 
company's products can be found in applications as varied as digital 
imagesetters, semiconductor inspection tools, and DNA analyzing equipment. NEAT 
enjoys a reputation as a leader in application-specific positioning systems for 
such fields as graphic arts, biotechnology and instrumentation, disk drives, 
and semiconductor manufacturing. In addition, NEAT has a well-established
reputation in the development of linear positioning systems, one of the fastest 
growing segments of motion control.

The company has approximately 100 employees at its manufacturing facility in 
Lawrence, Mass., and recorded sales of approximately $13 million in 1998.

"NEAT adds significant new opportunities for Kollmorgen," Argov said, 
"particularly in the area of linear motion. We will, of course, incorporate 
Kollmorgen motors into the NEAT equipment, but we will also introduce the NEAT 
team to our OEM and industrial customers with the goal of transforming 
Kollmorgen from a supplier of motors and drives into a supplier of entire 
linear positioning systems."

"We're very pleased by this acquisition," said Argov. "It's a good example of 
our ongoing strategy to grow our business around our core expertise, 
high-performance electronic motion control."  Kollmorgen is a leading producer 
of high-performance electronic motion control components and systems. Additional
information can be found on the World Wide Web at http://www.kollmorgen.com.

Cautionary Statement
The anticipated benefits associated with this acquisition are forward-looking 
as defined in the federal securities laws. Expected performance may not be 
achieved due to a variety of factors including, but not limited to, competition 
and continued demand for its products, and other risks detailed in Kollmorgen's
filings with the Securities and Exchange Commission, including the Company's 
Annual Report on Form 10-K for the year ended December 31, 1998, under the 
heading "Forward-looking Information." Management believes, nonetheless, that 
the acquisition of NEAT offers the best strategy commensurate with Kollmorgen's 
financial objectives.
 
Contact: Dorothy Amaral, Kollmorgen Corp.   (781) 890-5655