SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-KSB/A

[ ]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

[X]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the transition period from January 1, 1998 to June 30, 1998

Commission file number 0-9040


                                 METRO-TEL CORP.
--------------------------------------------------------------------------------
                 (Name of small business issuer in its charter)


Delaware                                                11-2014231
-----------------------------------------------  -------------------------------
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                     Identification No.)

290 N.E. 68th Street, Miami, Florida 33138                95035
------------------------------------------------  ------------------------------
(Address of principal executive offices)                (Zip Code)

Issuer's telephone number, including area code:     305-754-4551

Securities  registered  under Section  12(b) of the Exchange Act:  Common Stock,
$.025 par value

Securities registered under Section 12(g) of the Exchange Act: None

          Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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 [ ]

          Check if there is no disclosure  of  delinquent  filers in response to
Item 405 of  Regulation  S-B contained in this form,  and no disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [X]

<PAGE>



Item 13.          Exhibits and Reports on Form 8-K.
                  --------------------------------

                  (a)      Exhibits

2(a)                 Agreement  of  Merger  dated as of July 1,  1998  among the
                     Company,  Metro-Tel  Acquisition  Corp.,   Steiner-Atlantic
                     Corp.,   William  K.   Steiner  and  Michael  S.   Steiner.
                     Incorporated  by reference  to Exhibit A of the  definitive
                     Proxy Statement of the Company filed with the Commission on
                     October 5, 1998 (File No. 0-9040).

3(a)(1)              Certificate of Incorporation of the Company,  as filed with
                     the Secretary of State of the State of Delaware on June 30,
                     1963.  (Incorporated  by reference to Exhibit 4.1(a) to the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(2)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of  State of the  State of  Delaware  on  March  27,  1968.
                     (Incorporated   by  reference  to  Exhibit  4.1(b)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(3)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of State of the State of  Delaware  on  November  4,  1983.
                     (Incorporated   by  reference  to  Exhibit  4.1(c)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(4)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of State of the State of  Delaware  on  November  5,  1986.
                     (Incorporated   by  reference  to  Exhibit  4.1(d)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(5)              Certificate of Change of Location of Registered  Office and
                     of Agent, as filed with the Secretary of State of the State
                     of  Delaware  on  December  31,  1986.   (Incorporated   by
                     reference to Exhibit 4.1(e) to the Company's Current Report
                     on Form 8-K dated (date of earliest event reported) October
                     29, 1998.)

3(a)(6)              Certificate  of Ownership and Merger of Design  Development
                     Incorporated into the Company,  as filed with the Secretary
                     of  State  of the  State  of  Delaware  on June  30,  1998.
                     (Incorporated   by  reference  to  Exhibit  4.1(f)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(7)              Certificate  of Amendment to the Company's  Certificate  of
                     Incorporation  as filed with the  Secretary of State of the
                     State of  Delaware on October 30,  1998.  (Incorporated  by
                     reference to Exhibit 4.1(g) to the Company's Current Report
                     on Form 8-K dated (date of earliest event reported) October
                     29, 1998.)

                                       -2-

<PAGE>



    4(a)(1)          Loan and Security  Agreement dated November 2, 1998 between
                     Steiner-Atlantic  Corp.  and  First  Union  National  Bank.
                     (Incorporated   by  reference  to  Exhibit  4.2(a)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

    4(a)(2)          Guaranty and Security  Agreement  dated November 2, 1998 by
                     the  Company  in  favor  of  First  Union   National  Bank.
                     (Incorporated   by  reference  to  Exhibit  4.2(b)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

  10(a)(1)(i)        Lease  dated  April 1,  1991  between  the  Company  and CB
                     Institutional  Fund  VII  with  respect  to  the  Company's
                     facilities  at  240  South  Milpitas  Boulevard,  Milpitas,
                     California.  (Exhibit  10(a)(2)  to  the  Company's  Annual
                     Report on Form 10-K for the year ended June 30, 1991,  File
                     No. 0-9040).

*10(a)(1)(ii)        Second  Amendment  to Lease dated  November 1, 1998 between
                     the  Company  and The  Realty  Associates  Fund  III,  L.P.
                     (successor-in-interest  to CB Institutional  Fund VII) with
                     respect to the Company's  facilities at 240 South  Milpitas
                     Boulevard, Milpitas, California.

*10(a)(2)            Lease dated October 6, 1995 between Steiner and William, K.
                     Steiner with respect to  Steiner's  facilities  located 290
                     N.E. 68th Street,  297 N.E. 67st and 277 N.E. 67 St. Miami,
                     Florida.

 10(b)(1)(i)+        Employment Agreement dated July 1, 1981 between the Company
                     and Venerando J.  Indelicato.  (Exhibit  10(b)(1)(i) to the
                     Company's  Annual  Report on Form 10-KSB for the year ended
                     June 30, 1995, File No. 0- 9040).

 10(b)(1)(ii)+       Amendment  No.  1  dated  July 1,  1983  to the  Employment
                     Agreement  dated  July 1,  1981  between  the  Company  and
                     Venerando  J.  Indelicato.  (Exhibit  10(b)(1)(ii)  to  the
                     Company's  Annual  Report on Form 10-KSB for the year ended
                     June 30, 1995, File No. 0-9040).

**10(b)(1)(iii)+     Amendment  No.2 dated  October 30,  1998 to the  Employment
                     Agreement  dated  July 1,  1981  between  the  Company  and
                     Venerando J. Indelicato.

   10(b)(2)+         Letter  agreement dated August 29, 1996 between the Company
                     and Richard A. Wildman,  a former executive  officer of the
                     Company.  (Exhibit  10(b)(2) to the Company's Annual Report
                     on Form 10-KSB for the year ended June 30,  1997,  File No.
                     0-9040).


                                       -3-

<PAGE>



   10(c)(1)+         The   Company's   1991  Stock  Option  Plan,   as  amended.
                     (Incorporated by reference to Exhibit 99.3 to the Company's
                     Current  Report on Form 8-K dated (date of  earliest  event
                     reported) October 29, 1998.)

   10(c)(2)(a)+      The Company's 1984 Non-Employee Director Stock Option Plan,
                     as  amended.  (Exhibit  10(d)(2)  to the  Company's  Annual
                     Report on Form 10-K for the year ended June 30, 1987,  File
                     No. 0-9040).

   10(c)(2)(b)+      The Company's 1994 Non-Employee Director Stock Option Plan.
                     (Exhibit A to the Company's  Proxy  Statement dated October
                     14, 1994 used in connection  with the Company's 1994 Annual
                     Meeting of Stockholders, File No. 0-9040).

   10(c)(3)+         Form of Stock Option  Agreement dated June 25, 1991 entered
                     into  between  the  Company  and each of  Sheppard  Beidler
                     (option  has  since  expired),   Lloyd  Frank  and  Michael
                     Michaelson,   together  with  a  schedule  identifying  the
                     details  in which the  actual  agreements  differ  from the
                     exhibit filed herewith.  (Exhibit 10(c)(4) to the Company's
                     Annual  Report  on Form  10-K for the year  ended  June 30,
                     1991, File No. 0- 9040).

   10(c)(4)+         Form of Stock  Option  Agreement  dated May 4, 1993 entered
                     into  between the  Company  and each of  Sheppard  Beidler,
                     Lloyd  Frank  and  Michael  Michaelson,   together  with  a
                     schedule  identifying  the  details  in  which  the  actual
                     agreements differ from the exhibit filed herewith. (Exhibit
                     10(c)(4) to the Company's  Annual Report on Form 10-KSB for
                     the year ended June 30, 1993, File No. 0-9040).

   *27               Financial Data Schedule.

--------------------

*        Filed with the original filing of this Report.

**       Filed herewith.

         All other exhibits are  incorporated  herein by reference to the filing
         indicated  in  the  parenthetical   reference   following  the  exhibit
         description.

+        Management contract or compensatory plan or arrangement.

                  (b)      Reports on Form 8-K

                  None


                                       -4-

<PAGE>



                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange  Act of 1934,  the  Company has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                                METRO-TEL CORP.

Dated: March 11, 1999
                                                By: /s/ Venerando J. Indelicato 
                                                    ----------------------------
                                                        Venerando J. Indelicato
                                           Treasurer and Chief Financial Officer


                                       -5-

<PAGE>





                                  EXHIBIT INDEX


Exhibit
Number                 Description
--------               -----------

2(a)                 Agreement  of  Merger  dated as of July 1,  1998  among the
                     Company,  Metro-Tel  Acquisition  Corp.,   Steiner-Atlantic
                     Corp.,   William  K.   Steiner  and  Michael  S.   Steiner.
                     Incorporated  by reference  to Exhibit A of the  definitive
                     Proxy Statement of the Company filed with the Commission on
                     October 5, 1998 (File No. 0-9040).

3(a)(1)              Certificate of Incorporation of the Company,  as filed with
                     the Secretary of State of the State of Delaware on June 30,
                     1963.  (Incorporated  by reference to Exhibit 4.1(a) to the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(2)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of  State of the  State of  Delaware  on  March  27,  1968.
                     (Incorporated   by  reference  to  Exhibit  4.1(b)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(3)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of State of the State of  Delaware  on  November  4,  1983.
                     (Incorporated   by  reference  to  Exhibit  4.1(c)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(4)              Certificate   of   Amendment   to   the    Certificate   of
                     Incorporation  of the Company,  as filed with the Secretary
                     of State of the State of  Delaware  on  November  5,  1986.
                     (Incorporated   by  reference  to  Exhibit  4.1(d)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

3(a)(5)              Certificate of Change of Location of Registered  Office and
                     of Agent, as filed with the Secretary of State of the State
                     of  Delaware  on  December  31,  1986.   (Incorporated   by
                     reference to Exhibit 4.1(e) to the Company's Current Report
                     on Form 8-K dated (date of earliest event reported) October
                     29, 1998.)

3(a)(6)              Certificate  of Ownership and Merger of Design  Development
                     Incorporated into the Company,  as filed with the Secretary
                     of  State  of the  State  of  Delaware  on June  30,  1998.
                     (Incorporated   by  reference  to  Exhibit  4.1(f)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)


                                       -6-

<PAGE>



  3(a)(7)            Certificate  of Amendment to the Company's  Certificate  of
                     Incorporation  as filed with the  Secretary of State of the
                     State of  Delaware on October 30,  1998.  (Incorporated  by
                     reference to Exhibit 4.1(g) to the Company's Current Report
                     on Form 8-K dated (date of earliest event reported) October
                     29, 1998.)

  4(a)(1)            Loan and Security  Agreement dated November 2, 1998 between
                     Steiner-Atlantic  Corp.  and  First  Union  National  Bank.
                     (Incorporated   by  reference  to  Exhibit  4.2(a)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

  4(a)(2)            Guaranty and Security  Agreement  dated November 2, 1998 by
                     the  Company  in  favor  of  First  Union   National  Bank.
                     (Incorporated   by  reference  to  Exhibit  4.2(b)  to  the
                     Company's  Current  Report  on  Form  8-K  dated  (date  of
                     earliest event reported) October 29, 1998.)

 10(a)(1)(i)         Lease  dated  April 1,  1991  between  the  Company  and CB
                     Institutional  Fund  VII  with  respect  to  the  Company's
                     facilities  at  240  South  Milpitas  Boulevard,  Milpitas,
                     California.  (Exhibit  10(a)(2)  to  the  Company's  Annual
                     Report on Form 10-K for the year ended June 30, 1991,  File
                     No. 0-9040).

*10(a)(1)(ii)        Second  Amendment  to Lease dated  November 1, 1998 between
                     the  Company  and The  Realty  Associates  Fund  III,  L.P.
                     (successor-in-interest  to CB Institutional  Fund VII) with
                     respect to the Company's  facilities at 240 South  Milpitas
                     Boulevard, Milpitas, California.

 *10(a)(2)           Lease dated October 6, 1995 between Steiner and William, K.
                     Steiner with respect to  Steiner's  facilities  located 290
                     N.E. 68th Street,  297 N.E. 67st and 277 N.E. 67 St. Miami,
                     Florida.

   10(b)(1)(i)+      Employment Agreement dated July 1, 1981 between the Company
                     and Venerando J.  Indelicato.  (Exhibit  10(b)(1)(i) to the
                     Company's  Annual  Report on Form 10-KSB for the year ended
                     June 30, 1995, File No. 0- 9040).

   10(b)(1)(ii)+     Amendment  No.  1  dated  July 1,  1983  to the  Employment
                     Agreement  dated  July 1,  1981  between  the  Company  and
                     Venerando  J.  Indelicato.  (Exhibit  10(b)(1)(ii)  to  the
                     Company's  Annual  Report on Form 10-KSB for the year ended
                     June 30, 1995, File No. 0-9040).

**10(b)(1)(iii)+     Amendment  No.2 dated  October 30,  1998 to the  Employment
                     Agreement  dated  July 1,  1981  between  the  Company  and
                     Venerando J. Indelicato.

    10(b)(2)+        Letter  agreement dated August 29, 1996 between the Company
                     and Richard A. Wildman,  a former executive  officer of the
                     Company. (Exhibit 10(b)(2) to the

                                       -7-

<PAGE>



                     Company's  Annual  Report on Form 10-KSB for the year ended
                     June 30, 1997, File No. 0-9040).

  10(c)(1)+          The   Company's   1991  Stock  Option  Plan,   as  amended.
                     (Incorporated by reference to Exhibit 99.3 to the Company's
                     Current  Report on Form 8-K dated (date of  earliest  event
                     reported) October 29, 1998.)

  10(c)(2)(a)+       The Company's 1984 Non-Employee Director Stock Option Plan,
                     as  amended.  (Exhibit  10(d)(2)  to the  Company's  Annual
                     Report on Form 10-K for the year ended June 30, 1987,  File
                     No. 0-9040).

  10(c)(2)(b)+       The Company's 1994 Non-Employee Director Stock Option Plan.
                     (Exhibit A to the Company's  Proxy  Statement dated October
                     14, 1994 used in connection  with the Company's 1994 Annual
                     Meeting of Stockholders, File No. 0-9040).

   10(c)(3)+         Form of Stock Option  Agreement dated June 25, 1991 entered
                     into  between  the  Company  and each of  Sheppard  Beidler
                     (option  has  since  expired),   Lloyd  Frank  and  Michael
                     Michaelson,   together  with  a  schedule  identifying  the
                     details  in which the  actual  agreements  differ  from the
                     exhibit filed herewith.  (Exhibit 10(c)(4) to the Company's
                     Annual  Report  on Form  10-K for the year  ended  June 30,
                     1991, File No. 0- 9040).

   10(c)(4)+         Form of Stock  Option  Agreement  dated May 4, 1993 entered
                     into  between the  Company  and each of  Sheppard  Beidler,
                     Lloyd  Frank  and  Michael  Michaelson,   together  with  a
                     schedule  identifying  the  details  in  which  the  actual
                     agreements differ from the exhibit filed herewith. (Exhibit
                     10(c)(4) to the Company's  Annual Report on Form 10-KSB for
                     the year ended June 30, 1993, File No. 0-9040).

  *27                Financial Data Schedule.

--------------------

*        Filed with the original filing of this Report.

**       Filed herewith.

         All other exhibits are  incorporated  herein by reference to the filing
         indicated  in  the  parenthetical   reference   following  the  exhibit
         description.

+        Management contract or compensatory plan or arrangement.


                                       -8-