UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q
                Quarterly report pursuant to section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

For the quarter ended March 31, 1997             Commission file number 0-13875


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


                Texas                                             74-1591073
   (State or other jurisdiction of                              (IRS employer
   incorporation or organization)                           identification no.)

 235 West Turbo, San Antonio, Texas                                   78216
(Address of principal executive offices)                           (Zip Code)

       Registrants telephone number, including area code: (210) 344-3071

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 14(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 issuers of classes of
common stock, as of the latest practicable date.

                  Title                              Shares outstanding as of
                                                             May 12, 1997

Common stock, par value $.01 per share                        5,843,776



<PAGE>


Part I - Financial Information

Item 1 - Financial Statements
<TABLE>
<CAPTION>

                                                 LANCER CORPORATION AND SUBSIDIARIES
                                                      CONSOLIDATED BALANCE SHEETS

                                                                  ASSETS


                                                                  March 31,                    December 31,
                                                                    1997                           1996
                                                             --------------------           --------------------
                                                                 (Unaudited)

<S>                                                        <C>                            <C>
Current assets:
  Cash                                                     $           1,183,623          $           1,016,425
                                                             --------------------           --------------------
  Receivables:
    Trade accounts and notes                                          24,229,046                     19,686,318
     Refundable income taxes
                                                                               -                        396,495
    Other                                                              1,110,672                        690,034
                                                             --------------------           --------------------
                                                                      25,339,718                     20,772,847
    Less allowance for doubtful accounts
                                                                        (185,000)                      (185,000)
                                                             --------------------           --------------------
      Net receivables                                                 25,154,718                     20,587,847
                                                             --------------------           --------------------

  Inventories                                                         31,531,802                     28,238,923
  Prepaid expenses                                                       179,368                        243,937
  Deferred tax asset                                                     109,521                         64,513
                                                             --------------------           --------------------

      Total current assets                                            58,159,032                     50,151,645
                                                             --------------------           --------------------

Property, plant and equipment, at cost:
  Land                                                                 1,307,663                      1,307,663
  Buildings                                                            9,683,096                      9,681,466
  Machinery and equipment                                             15,645,476                     14,925,713
  Tools and dies                                                       8,455,958                      8,448,506
  Leaseholds, office equipment and vehicles                            6,117,284                      5,945,069
  Construction in progress                                             7,610,971                      5,162,508
                                                             --------------------           --------------------
                                                                      48,820,448                     45,470,925
  Less accumulated depreciation and amortization                     (20,286,834)                   (19,676,377)
                                                             --------------------           --------------------
    Net property, plant and equipment                                 28,533,614                     25,794,548
                                                             --------------------           --------------------

Long-term receivables                                                    358,601                        404,007
Investment in affiliates                                               3,011,132                      2,975,000
Intangibles and other assets,
   at cost, less accumulated amortization                              5,628,699                      2,684,073
                                                             --------------------           --------------------

                                                           $          95,691,078          $          82,009,273
                                                             ====================           ====================

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




                                       2
<PAGE>
<TABLE>
<CAPTION>
                                                    LANCER CORPORATION AND SUBSIDIARIES
                                                  CONSOLIDATED BALANCE SHEETS (continued)

                                                  LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                      March 31,                    December 31,
                                                                        1997                           1996
                                                                 --------------------           -------------------
                                                                     (Unaudited)
<S>                                                            <C>                           <C>
Current liabilities:
  Accounts payable                                             $           9,904,877          $          6,302,345
  Current installments of long-term debt                                   3,247,200                     1,852,500
  Line of credit with bank                                                13,000,000                    11,700,000
  Deferred licensing and maintenance fees                                  1,276,598                     1,339,868
  Accrued expenses and other liabilities                                   4,228,024                     4,288,130
  Income taxes payable                                                       726,030                             -
                                                                 --------------------           -------------------

    Total current liabilities                                             32,382,729                    25,482,843

Deferred tax liability                                                     1,059,782                     1,038,655
Other long-term liabilities                                                  820,000                       820,000
Long-term debt, excluding current installments                            20,365,550                    15,459,375
  Deferred licensing and maintenance fees                                  2,173,149                     2,172,137
                                                                 --------------------           -------------------

    Total liabilities                                                     56,801,210                    44,973,010
                                                                 --------------------           -------------------

Shareholders equity:
  Common stock, $.01 par value:
   10,000,000 shares authorized; 5,836,925 and 5,820,976
   issued and outstanding in 1997 and 1996, respectively                      58,369                        58,209

  Additional paid-in capital                                               9,992,855                     9,888,244

  Cumulative translation adjustment                                          142,505                       183,803

  Retained earnings                                                       28,696,139                    26,906,007
                                                                 --------------------           -------------------

    Total shareholders' equity                                            38,889,868                    37,036,263
                                                                 --------------------           -------------------

                                                               $          95,691,078          $         82,009,273
                                                                 ====================           ===================
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

<TABLE>
<CAPTION>

                                         LANCER CORPORATION AND SUBSIDIARIES
                                          CONSOLIDATED STATEMENTS OF INCOME
                                                       (Unaudited)

                                                                    Three Months Ended
                                                            March 31,                 March 31,
                                                              1997                      1996
                                                        ------------------        ------------------

<S>                                                   <C>                       <C>                
Net sales                                             $        30,398,159       $        23,678,197
Cost of sales                                                  22,733,537                17,975,196
                                                        ------------------        ------------------
    Gross profit
                                                                7,664,622                 5,703,001

Selling, general and administrative expenses                    4,220,650                 3,223,520
                                                        ------------------        ------------------

    Operating income                                            3,443,972                 2,479,481
                                                        ------------------        ------------------

Other income (expense):
  Interest expense                                               (547,458)                 (428,909)
  Interest and other income, net                                   16,369                   124,104
                                                        ------------------        ------------------

                                                                 (531,089)                 (304,805)
                                                        ------------------        ------------------

    Income before income taxes
                                                                2,912,883                 2,174,676
                                                        ------------------        ------------------

Income taxes expense (benefit):
  Current                                                       1,101,624                   864,594
  Deferred                                                         21,127                   (30,293)
                                                        ------------------        ------------------

                                                                1,122,751                   834,301
                                                        ------------------        ------------------

    Net income                                       $          1,790,132      $          1,340,375
                                                        ==================        ==================

Weighted average shares                                         6,155,254                 6,013,596
                                                        ==================        ==================

Net earnings per share                                $              0.29       $              0.22
                                                        ==================        ==================

</TABLE>

          See accompanying notes to consolidated financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                       LANCER CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                    Three Months Ended
                                                                             March 31,                 March 31,
                                                                                1997                      1996
                                                                       -----------------------   -----------------------

Cash flow from operating activities:
<S>                                                                  <C>                       <C>                    
     Net income                                                      $             1,790,132   $             1,340,375

     Adjustments to reconcile net income to net cash provided by operating
       activities:
        Depreciation and amortization                                                615,202                   624,657
        Cumulative effect of the translation adjustment                              (41,298)                        -
        Loss on investments in affiliates                                            213,868                         -
        Changes in assets and liabilities:
            Receivables                                                           (4,917,960)               (3,949,333)
            Refundable income taxes                                                  396,495                         -
            Prepaid expenses                                                          64,569                   (80,278)
            Deferred tax liability                                                   (23,881)                  (93,799)
            Inventories                                                           (1,017,879)               (1,662,777)
            Other assets                                                             111,629                   169,506
            Accounts payable                                                       3,602,532                 2,983,501
            Accrued expenses and other liabilities                                   (60,106)                 (443,617)
            Income taxes payable                                                     726,030                   942,184
            Deferred license fees and other revenue                                  (62,258)                  886,680
            Other long-term liabilities                                                    -                    30,000
                                                                       -----------------------   -----------------------
     Net cash provided by operating activities                                     1,397,075                   747,099
                                                                       -----------------------   -----------------------

Cash flow from investing activities:
        Acquisition of property, plant and equipment                              (2,699,523)               (2,030,535)
        Acquisition of subsidiary company                                         (5,986,000)                         -
        Net long-term investments                                                   (250,000)                         -
                                                                       -----------------------   -----------------------
     Net cash used in investing activities                                        (8,935,523)               (2,030,535)
                                                                       -----------------------   -----------------------

Cash flow from financing activities:
        Net borrowings under line of credit agreements                             1,300,000                 1,000,000
        Proceeds from long-term debt                                               6,300,875                         -
        Retirement of long-term debt                                                       -                  (320,515)
        Proceeds from exercise of stock options                                      104,771                     9,658
                                                                       -----------------------   -----------------------
Net cash provided by financing activities
                                                                                   7,705,646                   689,143
                                                                       -----------------------   -----------------------
Net increase (decrease) in cash                                                      167,198                  (594,293)
Cash at beginning of year                                                          1,016,425                   754,352
                                                                       -----------------------   -----------------------
Cash at end of period                                                $             1,183,623   $               160,059
                                                                       =======================   =======================
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       5
<PAGE>

                       LANCER CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



1.       Basis of Presentation

All  adjustments  (consisting of normal  recurring  adjustments)  have been made
which are necessary for a fair presentation of financial position and results of
operations.  All intercompany  balances and transactions have been eliminated in
consolidation.  It is suggested that the  consolidated  financial  statements be
read in conjunction with the consolidated financial statements and notes thereto
included in the December 31, 1996 Annual Report on Form 10-K.

Net earnings per share are based on the  weighted  average  number of common and
common equivalent (dilutive stock options) shares outstanding each period. Fully
diluted net  earnings  per share would not be  different  than net  earnings per
share.  On July 9, 1996,  the  Company  effected  a  three-for-two  stock  split
accounted for as a dividend.  Prior year weighted average shares outstanding and
prior year per share amounts have been restated accordingly.

Certain amounts in the  consolidated  financial  statements for prior years have
been reclassified to conform with the current year's presentation.


2.       Inventory Components

The  Company  uses the  gross  profit  method  to  determine  cost of sales  and
inventory for interim  periods.  Inventory  components  are  estimated  based on
historical relationships as follows:

<TABLE>
<CAPTION>

                                               March 31,                  December 31,
                                                 1997                         1996
                                          --------------------         --------------------
<S>                                     <C>                          <C>                  
Finished Goods                          $           8,662,232        $           8,543,784
Work in process                                    18,493,758                   18,425,735
Raw material and supplies                           4,375,812                    1,269,404
                                         --------------------         --------------------
                                        $          31,531,802        $          28,238,923
                                          ====================         ====================
</TABLE>



3.       Long-term Debt

On January 10, 1997, the Company  issued $4.0 million of interest  bearing notes
to complete  the  acquisition  of its  Brazilian  subsidiary,  Lancer do Brasil,
Ltda., formerly Vila Formosa, Ltda., from PanAmerican Beverages, Inc. The notes,
issued  to the  seller,  are due in five  equal  annual  installments  and  bear
interest based upon and fluctuating with the London Interbank Offered Rates.

4.       Earnings Per Share

In February  1997,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Statement  of  Financial  Accounting  Standards  No.  128,  Earnings  Per  Share
(Statement  128).  Statement 128 specifies the  computation,  presentation,  and
disclosure  requirements for earnings per share (EPS) for entities with publicly
held  common  stock or  potential  common  stock.  Statement  128 was  issued to
simplify the  computation of EPS and to make the U.S.  standard more  compatible
with  the EPS  standards  of  other  countries  and  that  of the  International
Accounting  Standards  Committee (IASC). It replaces the presentation of primary
EPS with a presentation of basic EPS and fully diluted EPS with diluted EPS.

                                       6
<PAGE>

If the Company had adopted the  Statement as of March 31,  1997,  EPS would have
been as follows:
<TABLE>
<CAPTION>

                               Three Months Ended
                     March 31,                    March 31,
                        1997                         1996
                 -------------------          -------------------
<S>                <C>                          <C>         
Basic EPS          $       0.31                 $       0.23
Diluted EPS                0.29                         0.22
</TABLE>


5.       Subsequent Event

In April 1997, the Company  completed its  acquisition  of the Applied  Beverage
Systems  (1990),  Ltd.  (ABS)  business  based in  Auckland,  New  Zealand.  ABS
manufactures and distributes  fountain soft drink and beer dispensing systems in
New Zealand, Australia and Brazil. The acquisition was effected as a purchase of
certain assets and liabilities of ABS (the Net Assets) for a combination of $1.5
million in cash and 81,888 shares of Lancer Corporation common stock, based on a
price of $19 per share.


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

Results of Operations

Comparison of the Three-Month Periods Ended March 31, 1997 and 1996

Net sales for the  quarter  ended  March 31,  1997 were  $30.4  million,  a $6.7
million  (28.4%)  increase  from the $23.7  million for the same period in 1996.
Domestic and  international  sales in the 1997 period  increased by $3.4 million
(26.3%) and $3.3 million (30.9%) respectively, over levels of the same period of
1996.  The increase was the result of  increased  sales  volumes due to stronger
demand for most of the Companys  product lines,  plus the inclusion of Lancer do
Brasil, Ltda., a Brazilian based wholly-owned subsidiary, which began operations
in January 1997.

Gross profit for the first quarter of 1997  increased to $7.7 million  (25.2% of
net sales) from $5.7 million (24.1% of sales) in the same quarter last year. The
increase was caused by the higher sales level and improved profit  margins.  The
improvement  in  profit  margin  was  the  result  of  continued  reductions  in
manufacturing and overhead costs.

Selling,  general  and  administrative  expenses  were $4.2  million  during the
quarter ended March 31, 1997, an increase of $1.0  million,  or 30.9%,  from the
first  quarter  of 1996.  Expenses  rose  because of higher  activity  levels in
support of increased sales volume and the inclusion of Lancer do Brasil, Ltda.

Interest  expense was $547  thousand in the first  quarter of 1997, up from $429
thousand in the same period of 1996, reflecting higher average borrowings.

Net earnings for the quarter  ended March 31, 1997 were $1.8  million,  up 33.6%
from the $1.3 million earned in the same quarter of 1996.

Liquidity and Capital Resources

Cash from operating activities was $1.4 million for the three months ended March
31,  1997  compared  to $747  thousand  for the same  period in the prior  year.
Capital  spending of $2.7  million  together  with $2.0  million in cash used to
acquire  the  Brazilian  subsidiary  were the  primary  investments  made by the
Company in the 1997 period. These expenditures were financed by the $1.4 million
of cash generated from operating activities and by borrowings under the Companys
credit facilities.

                                       7
<PAGE>

The Company is continuing the expansion of its manufacturing and  administrative
facilities is San Antonio.  The  construction is expected to be completed by the
end of 1997. The remaining construction costs of approximately $2.5 million will
be funded from the Companys credit facilities.

In addition to the initial cash paid for its Brazilian  subsidiary,  the Company
also  issued to the seller  $4.0  million in  five-year  notes due in five equal
annual installments. The outstanding balance under the notes bear interest based
upon and fluctuating with LIBOR.

Subsequent to March 31, 1997 the Company acquired certain assets and liabilities
of Applied Beverage Systems (1990),  Ltd. (ABS) . The purchase purchase price of
$3.1 million was financed by borrowings of $1.5 million of borrowings  under the
Company's credit facilities and 81,888 shares of Lancer Corporation common stock
based on a price of $19 per share.

The  Company  expects  cash  from  operations,  availability  under  the  credit
facilities,  and cash on hand to be sufficient  to fund the Companys  growth for
the foreseeable future.

Part II - Other Information

Item 1 - Legal Proceedings

The Company is a party to various  lawsuits and claims  generally  incidental to
its business.  In the opinion of management and independent  legal counsel,  the
ultimate  disposition  of these  matters is not  expected to have a  significant
adverse effect on the Companys financial position or results of operations.

Item 6 - Exhibits and Reports on Form 8-K

         (a)      Exhibits:

                  None

         (b)      Reports on Form 8-K

                  The Company filed a report on Form 8-K in January 1997 for the
                  acquisition of a subsidiary company.


SIGNATURES

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

LANCER CORPORATION
(Registrant)



May 14, 1997                              By:  /s/George F. Schroeder
                                          George F. Schroeder
                                          President and CEO



May 14, 1997                              By:  /s/John P. Herbots
                                          John P. Herbots
                                          Chief Financial Officer


                                       8