<PAGE>
 
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                      SECURITIES AND EXCHANGE COMMISSION
 
                            WASHINGTON, D.C. 20549
 
                               ----------------
 
                                   FORM 10-Q
 
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934
 
 FOR THE QUARTER ENDED SEPTEMBER 27,         COMMISSION FILE NUMBER 0-13230
                1997
 
                              ALTRON INCORPORATED
            (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
            MASSACHUSETTS                              04-2464301
   (STATE OR OTHER JURISDICTION OF        (I.R.S. EMPLOYER IDENTIFICATION NO.)
   INCORPORATION OR ORGANIZATION)
 
    ONE JEWEL DRIVE, WILMINGTON,                          01887
            MASSACHUSETTS                              (ZIP CODE)
   (ADDRESS OF PRINCIPAL EXECUTIVE
              OFFICES)
 
              REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
                                (978) 658-5800
 
   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
 
  The number of shares of Common Stock of the Registrant outstanding as of
September 27, 1997 was 15,436,677 shares.
 
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<PAGE>
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                                     INDEX
 
<TABLE>
<CAPTION>
                                                                         PAGE
                                                                        NUMBER
                                                                        ------
 <C>      <S>                                                           <C>
 PART I.  FINANCIAL INFORMATION
 ITEM 1.  Financial Statements
          Consolidated Balance Sheets -- September 27, 1997 and
           December 28, 1996..........................................     3
          Consolidated Income Statements -- Three and Nine Months
           Ended September 27, 1997 and September 28, 1996............     4
          Consolidated Statements of Cash Flows -- Nine Months Ended
           September 27, 1997 and September 28, 1996..................     5
          Notes to Consolidated Financial Statements..................   6-7
 ITEM 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations..................................     8
 PART II. OTHER INFORMATION...........................................
 ITEM 6.  Exhibits and Reports on Form 8-K............................     9
          Signatures..................................................    10
</TABLE>
 
                                       2
<PAGE>
 
                        PART I -- FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                          CONSOLIDATED BALANCE SHEETS
 
<TABLE>
<CAPTION>
                                                         SEPTEMBER 27, DECEMBER 28,
                                                             1997          1996
                                                         ------------- ------------
(IN THOUSANDS, EXCEPT SHARE DATA)                         (UNAUDITED)
<S>                                                      <C>           <C>
ASSETS
Current assets:
  Cash and cash equivalents.............................   $ 10,594      $ 14,949
  Short-term investments................................     13,844        19,481
  Accounts receivable, net..............................     26,411        24,840
  Inventories...........................................     28,059        18,554
  Other current assets..................................      3,531         2,935
                                                           --------      --------
    Total current assets................................     82,439        80,759
Property, plant and equipment, net......................     59,626        45,727
Costs in excess of net assets of acquired company.......      3,254         3,461
Long-term investments...................................      4,249         4,614
                                                           --------      --------
                                                           $149,568      $134,561
                                                           ========      ========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
  Accounts payable......................................   $ 15,420      $ 12,965
  Accrued payroll and other employee benefits...........      3,414         3,910
  Other accrued expenses................................      1,747         2,895
                                                           --------      --------
    Total current liabilities...........................     20,581        19,770
                                                           --------      --------
Long-term debt..........................................      7,600         7,600
                                                           --------      --------
Deferred income taxes...................................      8,390         6,567
                                                           --------      --------
Stockholders' investment:
  Preferred stock, $1.00 par value --
   Authorized -- 1,000,000 shares
   Issued and outstanding -- none.......................        --            --
  Common stock, $.05 par value --
   Authorized -- 40,000,000 shares
   Issued -- 15,672,258 and 15,477,776 shares...........        784           774
  Paid-in capital.......................................     39,152        38,289
  Retained earnings.....................................     73,338        61,838
                                                           --------      --------
                                                            113,274       100,901
  Less treasury stock, at cost (235,581 shares).........        277           277
                                                           --------      --------
    Total stockholders' investment......................    112,997       100,624
                                                           --------      --------
                                                           $149,568      $134,561
                                                           ========      ========
</TABLE>
 
The accompanying notes are an integral part of these consolidated financial
statements.
 
                                       3
<PAGE>
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                         CONSOLIDATED INCOME STATEMENTS
 
<TABLE>
<CAPTION>
                              THREE MONTHS ENDED           NINE MONTHS ENDED
                          --------------------------- ---------------------------
                          SEPTEMBER 27, SEPTEMBER 28, SEPTEMBER 27, SEPTEMBER 28,
                              1997          1996          1997          1996
                          ------------- ------------- ------------- -------------
(IN THOUSANDS, EXCEPT
PER SHARE DATA,
UNAUDITED)
<S>                       <C>           <C>           <C>           <C>
Net sales...............     $41,541       $38,229      $125,269      $126,622
Cost of sales...........      32,321        28,894        96,627        95,873
                             -------       -------      --------      --------
Gross profit............       9,220         9,335        28,642        30,749
Selling, general and
 administrative
 expenses...............       3,655         2,850        10,475         9,065
                             -------       -------      --------      --------
Income from operations..       5,565         6,485        18,167        21,684
Other income............         350           460         1,188         1,383
Interest expense........           3            40            29           196
                             -------       -------      --------      --------
Income before provision
 for income taxes.......       5,912         6,905        19,326        22,871
Provision for income
 taxes..................       2,387         2,795         7,826         9,336
                             -------       -------      --------      --------
Net income..............     $ 3,525       $ 4,110      $ 11,500      $ 13,535
                             =======       =======      ========      ========
Net income per common
 and common equivalent
 share..................     $   .22       $   .26      $    .72      $    .85
                             =======       =======      ========      ========
Weighted average common
 and common equivalent
 shares outstanding.....      16,133        16,007        16,069        15,973
                             =======       =======      ========      ========
</TABLE>
 
 
The accompanying notes are an integral part of these consolidated financial
statements.
 
                                       4
<PAGE>
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
<TABLE>
<CAPTION>
                                                          NINE MONTHS ENDED
                                                     ---------------------------
                                                     SEPTEMBER 27, SEPTEMBER 28,
                                                         1997          1996
                                                     ------------- -------------
(IN THOUSANDS, UNAUDITED)
<S>                                                  <C>           <C>
Cash flows from operating activities:
  Net income........................................   $ 11,500      $ 13,535
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization...................      5,005         3,973
    Deferred income taxes...........................      1,823         1,782
    Changes in current assets and liabilities:
      Accounts receivable...........................     (1,571)       (1,383)
      Inventories...................................     (9,505)         (536)
      Other current assets..........................       (596)         (256)
      Accounts payable..............................      2,455          (596)
      Accrued payroll and other employee benefits...       (496)          509
      Accrued expenses..............................     (1,148)         (765)
                                                       --------      --------
Net cash provided by operating activities...........      7,467        16,263
                                                       --------      --------
Cash flows from investing activities:
  Purchases of investments, net.....................      6,002        (3,989)
  Capital expenditures..............................    (18,697)      (13,065)
                                                       --------      --------
Net cash used in investing activities...............    (12,695)      (17,054)
                                                       --------      --------
Cash flows from financing activities:
  Proceeds from long-term debt......................        --          7,600
  Principal payments of long-term debt, including
   current portion..................................        --         (7,746)
  Proceeds from issuance of common stock............        873           873
                                                       --------      --------
Net cash provided by financing activities...........        873           727
                                                       --------      --------
Net change in cash and cash equivalents.............     (4,355)          (64)
Cash and cash equivalents, beginning of period......     14,949        13,622
                                                       --------      --------
Cash and cash equivalents, end of period............   $ 10,594      $ 13,558
                                                       ========      ========
Supplemental disclosure of cash flow information:
  Cash paid during the period for:
    Interest........................................   $    395      $    363
    Income taxes....................................      6,117         8,719
</TABLE>
 
The accompanying notes are an integral part of these consolidated financial
statements.
 
                                       5
<PAGE>
 
                     ALTRON INCORPORATED AND SUBSIDIARIES
 
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
(1) BUSINESS
 
  Altron Incorporated (the "Company") is a leading contract manufacturer of
interconnect products used in advanced electronic equipment. The Company
manufactures complex products in the mid-volume sector of the electronic
interconnect industry including custom-designed backplanes, surface mount
assemblies and total systems, as well as multilayer, high density printed
circuit boards. Altron's customers include a diversified base of manufacturers
in the telecommunication, data communication, computer, industrial and medical
industries located in the United States and Europe.
 
(2) INTERIM FINANCIAL STATEMENTS
 
  In the opinion of the Company's management, these interim financial
statements contain all adjustments (consisting of normal recurring
adjustments) necessary for a fair presentation of the results for such
periods. The unaudited results of operations for the quarter and nine months
ended September 27, 1997 are not necessarily an indication of the results of
operations for the full year.
 
  The accompanying consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiaries, Altron Systems Corporation and
Altron Securities Corporation. All significant intercompany balances and
transactions have been eliminated in consolidation.
 
  Printed circuit boards manufactured by the Company and used in its assembly
operations are included in contract manufacturing sales to customers. Printed
circuit board sales represent sales to third parties.
 
  For information as to the significant accounting policies followed by the
Company and other financial and operating information, see the Company's Form
10-K for the year ended December 28, 1996 as filed with the Securities and
Exchange Commission (Commission File No. 0-13230). These interim financial
statements should be read in conjunction with the financial statements
included in the Form 10-K.
 
(3) NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE
 
  Net income per common and common equivalent share was computed based on the
weighted average number of common and common equivalent shares outstanding
during each period. Common equivalent shares include outstanding stock
options. Fully diluted net income per share has not been separately presented
as it would not be materially different from net income per share as
presented.
 
  In March 1997, SFAS No. 128, Earnings Per Share, was issued which
established new standards for calculating and reporting earnings per share.
The Company will adopt this new standard in its fiscal year end 1997 financial
statements, which will require the reporting of diluted earnings per share and
basic earnings per share. For the quarters ended September 27, 1997 and
September 28, 1996 diluted earnings per share were $0.22 and $0.26,
respectively and basic earnings per share were $0.23 and $0.27, respectively.
For the nine months ended September 27, 1997 and September 28, 1996, diluted
earnings per share were $0.72 and $0.85, respectively and basic earnings per
share were $0.75 and $0.90, respectively.
 
                                       6
<PAGE>
 
                     ALTRON INCORPORATED AND SUBSIDIARIES
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
(4) INVENTORIES
 
  Inventories are stated at the lower of cost (first-in, first-out method) or
market. Cost includes materials, labor and manufacturing overhead. Inventories
are summarized as follows (in thousands, September 27, 1997, unaudited):
 
<TABLE>
<CAPTION>
                                                      SEPTEMBER 27, DECEMBER 28,
                                                          1997          1996
                                                      ------------- ------------
     <S>                                              <C>           <C>
     Raw materials...................................    $15,935      $10,040
     Work-in-process.................................     12,124        8,514
                                                         -------      -------
                                                         $28,059      $18,554
                                                         =======      =======
</TABLE>
 
(5) SHORT-TERM DEBT
 
  The Company has a $5.0 million unsecured line of credit available with its
bank at the bank's prime rate. There were no borrowings outstanding under the
line of credit and the entire line was available at September 27, 1997 and
December 28, 1996.
 
(6) SIGNIFICANT CUSTOMERS
 
  One single customer accounted for 11% and 15% of net sales for the nine
month periods ended September 27, 1997 and September 28, 1996, respectively.
 
                                       7
<PAGE>
 
                     ALTRON INCORPORATED AND SUBSIDIARIES
 
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
 
RESULTS OF OPERATIONS
 
  Net sales for the third quarter of 1997 were $41.5 million, as compared to
net sales of $38.2 million for the same quarter of 1996. Net sales for the
first nine months of 1997 were $125.3 million, as compared to $126.6 million
for the same period last year. The higher sales for the third quarter resulted
primarily from increased shipments to the Company's larger customers in the
data communication, computer and industrial segments of the electronics
industry.
 
  Contract manufacturing sales for the third quarter of 1997 were $30.7
million or 74% of net sales compared to the third quarter of 1996 of $28.4
million or 74% of net sales. For the first nine months of 1997, contract
manufacturing sales were $90.0 million, 72% of net sales compared to the third
quarter of 1996 of $96.3 million or 76%. Printed circuit board sales for the
third quarter of 1997 were $10.8 million or 26% of net sales compared to the
third quarter 1996 of $9.8 million or 26%. For the first nine months of 1997,
printed circuit board sales were $35.3 million or 28% of net sales compared to
the third quarter of 1996 of $30.3 million or 24%.
 
  Gross margin as a percentage of net sales for the third quarter of 1997 was
22.2% as compared to 24.4% for the third quarter of 1996. Gross margin as a
percentage of net sales for the first nine months of 1997 was 22.9% as
compared to 24.3% for the same period in 1996. The Company's lower gross
margin was primarily the result of a less favorable shipment mix and higher
costs related to the Company's recent capability and capacity expansion.
 
  Selling, general and administrative expenses as a percentage of net sales
was 8.8% for the third quarter of 1997, as compared to 7.5% for the same
quarter of 1996. Selling, general and administrative expenses were 8.4% and
7.2% for the first nine months of 1997 and 1996, respectively. The increase in
selling, general and administrative expenses as a percentage of net sales was
primarily the result of higher expenses associated with investment in program
management and sales to increase customer focus and further expand the
customer base.
 
  Other income was $350,000 and $1,188,000 for the third quarter and first
nine months of 1997, respectively, down $110,000 and $195,000 from the
comparable prior year periods as a result of lower cash balances available for
investment. The lower interest expense for the third quarter and first nine
months of 1997 was principally the result of higher interest capitalized.
 
LIQUIDITY AND CAPITAL RESOURCES
 
  At September 27, 1997, the Company had working capital of $61.9 million and
a current ratio of 4.0. Working capital included cash and cash equivalents and
short-term investments of $24.4 million. Long-term investments were $4.2
million at September 27, 1997. Long-term debt was $7.6 million at the end of
the third quarter.
 
  At September 27, 1997, the Company had a $5.0 million unsecured line of
credit with its bank, all of which was available.
 
  The Company believes that its existing bank credit and working capital,
together with funds generated from operations, will be sufficient to satisfy
anticipated sales growth and investment in manufacturing facilities and
equipment. The Company had commitments for approximately $4.0 million of
capital expenditures as of September 27, 1997.
 
                                       8
<PAGE>
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                          PART II -- OTHER INFORMATION
 
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
 
  (a) Exhibits
 
    27--Financial Data Schedule
 
  (b) Reports on Form 8-K
 
    No reports on Form 8-K were filed by the Company during the quarter ended
  September 27, 1997.
 
                                       9
<PAGE>
 
                                  SIGNATURES
 
  PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(D) 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.
 
                                          Altron Incorporated
 
              SIGNATURE                        TITLE                 DATE
 
    /s/ Samuel Altschuler       Chairman of the Board of         November 4,
-----------------------------   Directors and President              1997
      SAMUEL ALTSCHULER         (principal executive officer)
 
       /s/ Burton Doo           Executive Vice President and     November 4,
-----------------------------   Director, President, Altron          1997
         BURTON DOO             Systems Corporation
 
    /s/ Peter D. Brennan        Vice President, Chief            November 4,
-----------------------------   Financial Officer and                1997
      PETER D. BRENNAN          Treasurer (principal
                                financial and accounting
                                officer)
 
 
                                      10