SECURITIES AND EXCHANGE COMMISSION
                        Washington, D. C. 20549
                       
                              FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997

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

For the transition period from               to

Commission file number 0-9040

                              METRO TEL CORP.
___________________________________________________________________________
     (Exact name of small business issuer as specified in its charter)
           
           DELAWARE                                11-2014231
____________________________________________________________________________
     (State of other jurisdiction of             (I.R.S.Employer
     incorporation or organization)             Identification No.)

        250 South Milpitas Blvd., Milpitas, California 95035
___________________________________________________________________________
                  (Adress of principal executive offices)

                              (408) 946-4600
---------------------------------------------------------------------------
                          (Issuer's telephone number)

      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    .

      State the number of shares outstanding of each of the issuer's
classes of common equity as of the latest practicable date:

      Common Stock, $.025 par value per share - 2,054,046 shares
outstanding as of November 12, 1997
===========================================================================    
Metro Tel Corp.
Statement of Operations
(Unaudited, Note A)
 
                                                 For the three months
                                                  ended September 30, 
                                                 1997            1996

Net Sales                                     $ 1,046,628   $1,016,250 
                                  

Cost of goods sold                                633,406      626,614
____________________________________________________________________________  
   Gross Profit                                   413,222      389,636
____________________________________________________________________________
Selling, general and 
   administrative 
   expenses                                       311,323      280,385

Research & development                             56,129       68,603 
Interest and other income                          (2,785)      (1,372)        
____________________________________________________________________________
                                                  364,667      347,616       
   
Earnings (loss) before provision
  for income taxes                                 48,555       42,020
Provision (credit) for                      
  income taxes                                     19,400       16,800       
____________________________________________________________________________
      Net Earnings                              $  29,155    $  25,220   
============================================================================
Earnings  per common           
   share (Note B)                               $     .01    $     .01
============================================================================
Weighted average number 
   of shares
   outstanding (Note B)                         2,054,046    2,004,046
============================================================================

Metro Tel Corp.
Balance Sheets
(Unaudited, Note A)

ASSETS

                                         September 30,            June 30,
                                             1997                   1997

Current Assets
   Cash and cash equivalents           $  383,930               $  498,615
   Accounts receivable, net               622,058                  550,457
   Inventories                          1,607,157                1,516,339
   Prepaid expenses and other              52,776                   43,696
   Deferred income taxes                   27,000                   27,000
____________________________________________________________________________
   Total current assets                 2,692,921                2,636,107

Property and equipment - at cost  
   Machinery and equipment                500,237                  486,683
   Furniture and fixtures                  76,927                   76,883
   Leasehold Improvements                   8,765                    8,765
__________________________________________________________________________
                                          585,929                  572,331
   Less accumulated depreciation          467,667                  457,671
__________________________________________________________________________
                                          118,262                  114,660  

Other assets
   Goodwill, net of accumulated
     amortization of $406,709
     on September 30, 1997 and
     $399,255 on June 30, 1997            785,990                  793,444
   Other, net                              10,134                   10,465
____________________________________________________________________________
                                          796,124                  803,909

                                       $3,607,307               $3,554,676
==========================================================================
     
Metro Tel Corp.
Balance Sheets
(Unaudited, Note A)

LIABILITIES AND
STOCKHOLDERS' EQUITY									

                                       September 30,          June 30,
                                           1997                 1997

Current Liabilities     
   Accounts payable                    $  160,483               $  212,171
   Accrued liabilities                    247,044                  171,880
_____________________________________________________________________________
    Total current liabilities             407,527                  384,051

Deferred Income Taxes                        7,000                    7,000

Stockholders' Equity
   Preferred stock, $1 par value,
      200,000 shares authorized,  
      none issued or outstanding
  	Common stock, $.025 par value, 
      6,000,000 shares authorized,
	     2,080,296 shares issued,
      2,054,046 shares outstanding         52,007                   52,007
   Additional paid-in capital           2,152,423                2,152,423
   Retained earnings                    1,057,100                1,027,945
_____________________________________________________________________________
                                        3,261,530                3,232,375

   Less 26,250 shares of treasury
      stock - at cost                     (68,750)                 (68,750)
_____________________________________________________________________________
                                        3,192,780                3,163,625
_____________________________________________________________________________
                                       $3,607,307               $3,554,676
                   
=============================================================================

Metro Tel Corp.
Statements of Cash Flows
(Unaudited, Note A)

                                             For the three months ended
                                                     September 30,
                                               1997               1996

Cash flows from operating activities:
   Net earnings                           $     29,155         $   25,220
   Adjustments to reconcile net earnings
     to cash provided by operating
     activities 
       Depreciation and amortization            17,781             16,147
       (Increase) decrease in operating assets:
          Accounts receivable                  (71,601)           214,740 
          Inventories                          (90,818)          (139,816) 
          Prepaid expenses and other            (9,080)           (30,390)

       Increase (decrease) in operating 
          liabilities:
       Accounts payable                        (51,688)           (50,625)   
       Accrued liabilities                      75,164            (56,873)
       Income taxes payable                                       (14,127)
____________________________________________________________________________
          Net cash (used) provided    
           by operating activities            (101,087)           (35,724)
____________________________________________________________________________
Cash flows from investing  activities:
    Capital expenditures                       (13,598)            (8,226)
____________________________________________________________________________
                                                              
          Net (decrease) in cash
          and cash equivalents                (114,685)           (43,950) 
       
Cash and cash equivalents at beginning 
    of year                                    498,615            411,924
____________________________________________________________________________
Cash and cash equivalents at end of
   period                                 $    383,930       $    367,974  
============================================================================
Supplement disclosures of cash flow    
  information
   Cash paid during the period for
      Income taxes                               -            $    29,540    
[FN]
                             METRO TEL CORP.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note A - General: The accompanying unaudited financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and the instructions to Form 10-QSB
related to interim period financial statements.  Accordingly, these
financial statements do not include certain information and footnotes
required by generally accepted accounting principles for complete
financial statements.  However, the accompanying unaudited financial
statements contain all adjustments (consisting only of normal recurring 
accruals) which, in the opinion of management, are necessary in order to
make the financial statements not misleading.  The results of operations
for interim periods are not necessarily indicative of the results to be
expected for the full year.  For further information, refer to the
Company's financial statements and footnotes thereto included in the 
Company's Annual Report on Form 10-KSB for the year ended June 30, 1997.
				
Note B - Earnings Per Common Share: Earnings per common share is based upon
the weighted average number of shares of common stock outstanding during the
year. Stock options have not been included in the calculation since their
inclusion would not be materially dilutive.









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

Liquidity and Capital Resources

     During the three month period ended September 30, 1997, cash
decreased by $114,685. The decrease included $101,087 used by operating 
activities and $13,598 used to purchase capital assets. Cash generated for
operations by profits ($29,155) and depreciation ($17,781) were used to  
support changes in operating assets and liabilities, primarily increases in
inventories ($90,818), accounts receivable ($71,601) and accrued expenses 
($75,164), and a decrease in accounts payable ($51,688). The Company believes
that the cash which it expects to generate from operations and its existing 
cash will be sufficient to meet operational needs.

Results of Operations

     Net sales increased by $30,378 (3.0%) in the first quarter of fiscal
1998 from the same period in fiscal 1997. The increase in sales during the 
first quarter was mainly due to increases in foreign sales of telephone test
equipment and an increase in new test equipment sales to the Regional Bell
Operating Companies (RBOCs). Prices remained constant during the period.
Sales of telephone test equipment increased by $44,410 (4.7%) in the first
quarter of fiscal 1998 from the same period in fiscal 1997, with increases
in sales of installers's test sets (15.2%) being offset partially by decreases 
in sales of outside plant test sets (2.6%) and transmission test equipment
(19.8%). Sales of customer premise equipment decreased by $17,022 (46.2%)
during the first three months of fiscal 1998 when compared to the same period
of fiscal 1997, mainly due to a reduction in the sale of dialers. Sales of
miscellaneous products, parts and repairs increased by $2,990 (7.5%).

     The Company's gross profit margin, expressed as a percentage of sales,
improved to 39.5% for the first quarter of fiscal 1998 from 38.3% for the same 
period of fiscal 1997. The improvement was mainly due to the increased level
of sales which permitted the Company to better absorb its fixed expenses and
to a slight reduction in labor costs.

     Selling, general and administrative expenses increased during the first
quarter of fiscal 1998 by $30,938 (11.0%) and as a percentage of sales to
29.7% from 27.6% during the first quarter of fiscal 1997. The increase,
which was mainly in selling expenses (58.4%), consisted of increases in
advertising (172.1%), royalties and commissions (69.3%) and payroll (71.2%).
These increases offset decreases in general and adminstrative expenses (14.2%)
due principally to the closing of the Company's Jericho, NY office in January
1997. 

     Research and development expenses decreased by $10,727 (15.6%) in the
first quarter of fiscal 1998 compared to the same period of fiscal 1997
mainly due to payroll reductions associated with staff changes.


      
                        PART 11 - OTHER INFORMATION

Item 4.     Submission of Matters to a Vote of Security Holders

            At the Company's 1997 Annual Meeting of Stockholders held
            on November 5, 1997, stockholders re-elected the Company's
            existing Board of Directors by the following votes:

                                            For             Withheld
Michael Epstein                          1,454,098           6,763  

Lloyd Frank                              1,454,169           6,692

Venerando J. Indelicato                  1,455,923           4,938

Michael Michaelson                       1,456,810           4,051

Item 7.     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 during the
            quarter ended September 30, 1997.

                          SIGNATURES

    In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

                                       METRO-TEL CORP.

Date:  November 12, 1997            By: Venerando J. Indelicato
                                       President, Treasurer and
                                       Principal Financial and
                                       Chief Accounting Officer


                             EXHIBIT INDEX

Exhibit Number           Description                

     27     Financial Data Schedule