<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 APRIL 4, 1998         COMMISSION FILE NUMBER 0-13230
 
                              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
April 4, 1998 was 15,548,879 shares.
 
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                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                                     INDEX
 
<TABLE>
<CAPTION>
                                                                         PAGE
                                                                        NUMBER
                                                                        ------
 <C>      <S>                                                           <C>
 PART I.  FINANCIAL INFORMATION
 ITEM 1.  Financial Statements
          Consolidated Balance Sheets -- April 4, 1998 and January 3,
           1998.......................................................    3
          Consolidated Income Statements -- Three Months Ended April
           4, 1998 and March 29, 1997.................................    4
          Consolidated Statements of Cash Flows -- Three Months Ended
           April 4, 1998 and March 29, 1997...........................    5
          Notes to Consolidated Financial Statements..................    6
 ITEM 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations..................................    7
 PART II. OTHER INFORMATION
 ITEM 6.  Exhibits and Reports on Form 8-K............................    8
          Signatures..................................................    9
</TABLE>
 
                                       2
<PAGE>
 
                        PART I -- FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
                      ALTRON INCORPORATED AND SUBSIDIARIES
 
                          CONSOLIDATED BALANCE SHEETS
 
<TABLE>
<CAPTION>
                                                             APRIL 4,   JANUARY 3,
                                                               1998        1998
                                                            ----------- ----------
(IN THOUSANDS, EXCEPT SHARE DATA)                           (UNAUDITED)
<S>                                                         <C>         <C>
ASSETS
Current assets:
  Cash and cash equivalents................................  $ 13,215    $ 11,926
  Short-term investments...................................     9,105      15,556
  Accounts receivable, net.................................    30,735      25,781
  Inventories..............................................    35,378      28,626
  Other current assets.....................................     3,381       3,337
                                                             --------    --------
    Total current assets...................................    91,814      85,226
Property, plant and equipment, net.........................    67,259      65,311
Costs in excess of net assets of acquired company..........     3,115       3,184
Long-term investments......................................     2,381       1,882
                                                             --------    --------
                                                             $164,569    $155,603
                                                             ========    ========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
  Accounts payable.........................................  $ 18,986    $ 16,455
  Accrued payroll and other employee benefits..............     3,846       3,367
  Other accrued expenses...................................     2,841       2,269
                                                             --------    --------
    Total current liabilities..............................    25,673      22,091
                                                             --------    --------
Long-term debt.............................................     7,600       7,600
                                                             --------    --------
Deferred income taxes......................................    10,190       8,785
                                                             --------    --------
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 -- 15,784,460 and 15,726,769 shares..............       789         786
  Paid-in capital..........................................    40,517      40,113
  Retained earnings........................................    80,077      76,505
                                                             --------    --------
                                                              121,383     117,404
  Less treasury stock, at cost (235,581 shares)............       277         277
                                                             --------    --------
    Total stockholders' investment.........................   121,106     117,127
                                                             --------    --------
                                                             $164,569    $155,603
                                                             ========    ========
</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
                                                               -----------------
                                                                APRIL  MARCH 29,
                                                               4, 1998   1997
                                                               ------- ---------
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
<S>                                                            <C>     <C>
Net sales..................................................... $50,568  $43,168
Cost of sales.................................................  40,654   32,938
                                                               -------  -------
Gross profit..................................................   9,914   10,230
Selling, general and administrative expenses..................   4,333    3,363
                                                               -------  -------
Income from operations........................................   5,581    6,867
Other income..................................................     280      435
Interest expense..............................................       5        8
                                                               -------  -------
Income before provision for income taxes......................   5,856    7,294
Provision for income taxes....................................   2,284    2,954
                                                               -------  -------
Net income.................................................... $ 3,572  $ 4,340
                                                               =======  =======
Basic earnings per share...................................... $  0.23  $  0.28
                                                               =======  =======
Basic weighted average shares outstanding.....................  15,530   15,253
                                                               =======  =======
Diluted earnings per share.................................... $  0.22  $  0.27
                                                               =======  =======
Diluted weighted average shares outstanding...................  16,062   16,213
                                                               =======  =======
</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>
                                                              THREE MONTHS ENDED
                                                              -------------------
                                                              APRIL 4,  MARCH 29,
                                                                1998      1997
                                                              --------  ---------
(IN THOUSANDS, UNAUDITED)
<S>                                                           <C>       <C>
Cash flows from operating activities:
  Net income................................................. $ 3,572    $ 4,340
  Adjustments to reconcile net income to net cash (used in)
   provided by operating activities:
    Depreciation and amortization............................   2,130      1,660
    Deferred income taxes....................................   1,405      2,223
    Changes in current assets and liabilities:
      Accounts receivable....................................  (4,954)    (4,889)
      Inventories............................................  (6,752)      (969)
      Other current assets...................................     (44)      (590)
      Accounts payable.......................................   2,531      1,055
      Accrued payroll and other employee benefits............     479        369
      Other accrued expenses.................................     572       (219)
                                                              -------    -------
  Net cash (used in) provided by operating activities........  (1,061)     2,980
                                                              -------    -------
Cash flows from investing activities:
  Sales of investments, net..................................   5,952      1,830
  Capital expenditures.......................................  (4,009)    (6,734)
                                                              -------    -------
  Net cash provided by (used in) investing activities........   1,943     (4,904)
                                                              -------    -------
Cash flows from financing activities:
  Proceeds from issuance of common stock.....................     407         71
                                                              -------    -------
  Net cash provided by financing activities..................     407         71
                                                              -------    -------
Net change in cash and cash equivalents......................   1,289     (1,853)
Cash and cash equivalents, beginning of period...............  11,926     14,949
                                                              -------    -------
Cash and cash equivalents, end of period..................... $13,215    $13,096
                                                              =======    =======
Supplemental disclosure of cash flow information:
  Cash paid during the period for:
    Interest................................................. $   133    $   133
    Income taxes.............................................     528        783
</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
provides total design and manufacturing capability for complete electronic
systems, including multilayer boards, backplanes and surface mount assemblies.
Altron is an ISO 9000 registered company serving the telecommunication, data
communication, computer, industrial and medical industries located in the
United States and Europe. The Company has four plants located in Massachusetts
and Northern California.
 
(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 ended April 4,
1998 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 January 3, 1998 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) NEW ACCOUNTING PRONOUNCEMENTS
 
  Effective January 4, 1998, the Company adopted the provisions of SFAS No.
130, Reporting Comprehensive Income. The Company's total comprehensive income
for the three months ended April 4, 1998 was the same as reported net income.
 
  On March 4, 1998, Statement of Position (SOP) 98-1, Accounting for the Costs
of Computer Software Developed or Obtained for Internal Use was issued and on
April 9, 1998, SOP 98-5, Reporting on the Costs of Start-Up Activities was
issued. Both SOPs will be adopted by the Company at the beginning of fiscal
year 1999 and are not anticipated to have a material impact on the Company's
financial position or results of operations.
 
(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
consisted of $14.7 million of raw materials and $20.7 million of work-in-
process as of April 4, 1998 and $15.3 million of raw materials and $13.3
million of work-in-process as of January 3, 1998.
 
(5) SIGNIFICANT CUSTOMERS
 
  One customer accounted for 16% and 10% of net sales for the three month
periods ended April 4, 1998 and March 29, 1997, respectively.
 
 
                                       6
<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 first quarter of 1998 were $50.6 million, as compared to
net sales of $43.2 million for the same quarter of 1997. The higher shipment
level resulted principally from increased shipments to the Company's larger
customers in the computer segment of the electronics industry.
 
  Value added sales for the first quarter of 1998 were $39.6 million or
approximately 78% of net sales, compared to $31.0 million or 72% of net sales
in the first quarter of 1997. Printed circuit board sales for the first
quarter of 1998 were $11.0 million, approximately 22% of net sales compared to
$12.2 million or 28% of net sales in the first quarter of 1997.
 
  Gross margin as a percentage of net sales for the first quarter of 1998 was
19.6%, as compared to 23.7% in 1997. The Company's lower gross margin resulted
primarily from higher costs due to the Company's continued capacity expansion,
startup costs of new customer programs and the shift in shipment mix to a
higher level of value added products coupled with increased pricing pressures.
 
  Selling, general and administrative expenses as a percentage of net sales
were 8.6% in the first quarter of 1998 and 7.8% for the same quarter of 1997.
The increase in 1998 over the 1997 level resulted primarily from higher
expenses associated with the expansion of the Company's program management and
sales operations, as well as higher sales commission costs on increased
commissionable sales made by independent sales representatives.
 
  The decrease of $155,000 in other income in 1998, as compared to 1997, was
principally due to lower cash balances available for investment. Interest
expense for the first quarter of 1998 was approximately the same as the
respective 1997 period.
 
  The Company's effective tax rate for the first quarter of 1998 was 39%, as
compared to 40.5% for the first quarter of 1997, principally due to increased
tax credits.
 
LIQUIDITY AND CAPITAL RESOURCES
 
  At April 4, 1998, the Company had working capital of $66.1 million and a
current ratio of 3.6 compared to working capital of $63.1 million and a
current ratio of 3.9 at January 3, 1998. Cash and cash equivalents and short-
term investments were $22.3 million at April 4, 1998 and $27.5 million at
January 3, 1998. Long-term investments at April 4, 1998 were $2.4 million
compared to $1.9 million at January 3, 1998. Capital expenditures during the
first quarter of 1998 were $4.0 million compared to $6.7 million for the same
quarter in 1997.
 
  At April 4, 1998, 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 $3.0 million of
capital expenditures as of April 4, 1998.
 
YEAR 2000 COMPLIANCE
 
  During the first quarter, the Company continued its year 2000 date
conversion project. The costs of the project are not expected to have a
significant impact on the Company's results of operations and project
completion is planned for the middle of 1999. There can be no assurance,
however, that systems of other companies on which the Company's systems rely
will be converted on a timely basis or that any such conversion failure by
another company would not have an adverse effect on the Company's systems.
 
                                       7
<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
 
    The Company filed a Form 8-K with the Securities and Exchange Commission
  on February 5, 1998 which related to a change in the duration of the term
  of its Board of Directors.
 
                                       8
<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
 
<TABLE>
<CAPTION>
            NAME                                    TITLE                      DATE
            ----                                    -----                      ----
<S>                                  <C>                                  <C>
     /s/ Samuel Altschuler           Chairman of the Board of Directors    May 14, 1998
____________________________________ and President
         SAMUEL ALTSCHULER           (principal executive officer)
         /s/ Burton Doo              Executive Vice President and          May 14, 1998
____________________________________ Director, President, Altron Systems
             BURTON DOO              Corporation
      /s/ Peter D. Brennan           Vice President, Chief Financial       May 14, 1998
____________________________________ Officer
          PETER D. BRENNAN           and Treasurer
                                     (principal financial and accounting
                                     officer)
</TABLE>
 
                                       9