<PAGE>

                                   UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C. 20549

                                     FORM 10-Q
                                ___________________

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
     EXCHANGE ACT OF 1934

       For the quarterly period ended:  JUNE 27, 1998

                                         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: 333-32207


                              HCC INDUSTRIES INC.
            (Exact name of Registrant as specified in its charter)


             DELAWARE                                95-2691666
             --------                                ----------
  (State or other jurisdiction of                 (I.R.S. Employer
   incorporation or organization)                Identification No.)

              4232 TEMPLE CITY BLVD., ROSEMEAD, CALIFORNIA  91770
              ---------------------------------------------------
                      (Address of principal executive offices)


                                 (626) 443-8933
                                 --------------
                (Registrant's telephone number, including area code)

                                ___________________

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 (   )


    Registrant's Common Stock, outstanding at August 11, 1998 was 134,955 
shares.

<PAGE>

PART I - FINANCIAL INFORMATION
ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                     HCC INDUSTRIES INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT SHARE DATA)

                                    ASSETS

<TABLE>
<CAPTION>

                                                        JUNE 27,      MARCH 28,
                                                          1998          1998
                                                        ---------     ---------
<S>                                                     <C>           <C>
CURRENT ASSETS:
  Cash and cash equivalents                             $  11,752     $  13,441
  Trade accounts receivable, less allowance for
     doubtful accounts of $45 at June 27, 1998
     and $40 at March 28, 1998                              9,828        10,136
  Inventories                                               4,738         4,610
  Prepaid and deferred income taxes                           260           260
  Other current assets                                        428           416
                                                        ---------     ---------
     Total current assets                                  27,006        28,863     

PROPERTY, PLANT AND EQUIPMENT, NET                         18,238        14,617          

OTHER ASSETS:
  Intangible assets                                         5,571         5,643
  Deferred financing costs                                  3,436         3,532
  Deferred income taxes                                     4,192         4,192
  Restricted cash                                           6,095         6,013
                                                        ---------     ---------
       TOTAL ASSETS                                     $  64,538     $  62,860
                                                        ---------     ---------
                                                        ---------     ---------

<CAPTION>
                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

<S>                                                     <C>           <C>
CURRENT LIABILITIES:
  Current portion of long-term debt                     $     928     $     897
  Accounts payable                                          2,934         2,947
  Accrued liabilities                                       4,324         6,384
  Income taxes payable                                      1,001         1,752
                                                        ---------     ---------
         Total current liabilities                          9,187        11,980

LONG TERM LIABILITIES:
  Long-term debt, net of current portion                  101,084        98,201
  Other long-term liabilities                               9,576         9,619
                                                        ---------     ---------
                                                          119,847       119,800
                                                        ---------     ---------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT):
  Common stock; $.10 par value; authorized 550,000
     shares, issued and outstanding 134,955 shares             13            13
  Accumulated deficit                                     (55,322)      (56,953)
                                                        ---------     ---------
TOTAL STOCKHOLDERS' DEFICIT                               (55,309)      (56,940)
                                                        ---------     ---------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT             $  64,538     $  62,860
                                                        ---------     ---------
                                                        ---------     ---------

</TABLE>

  The accompanying notes are an integral part of these condensed consolidated
                               financial statements.

                                       2

<PAGE>

                        HCC INDUSTRIES INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                         (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>


                                                           Three Months Ended
                                                         ----------------------
                                                          June 27,     June 28,
                                                            1998         1997
                                                         ---------    ---------
<S>                                                      <C>          <C>
NET SALES                                                $  18,246    $  15,505

Cost of goods sold                                          10,933        9,319
                                                         ---------    ---------
GROSS PROFIT                                                 7,313        6,186

Selling, general and administrative expenses                 2,088        2,129
                                                         ---------    ---------
EARNINGS FROM OPERATIONS                                     5,225        4,057
                                                         ---------    ---------
OTHER INCOME (EXPENSE):
  Interest and other income                                    177          100
  Interest expense                                          (2,722)      (2,605)
                                                         ---------    ---------
            Total other expense, net                        (2,545)      (2,505)

Earnings before taxes and extraordinary item                 2,680        1,552
Taxes on earnings                                            1,049          609
                                                         ---------    ---------
Earnings before extraordinary item                           1,631          943

Extraordinary loss on retirement of debt, net
  of tax benefit of $640                                        --       (1,002)
                                                         ---------    ---------
NET EARNINGS (LOSS)                                       $  1,631    $     (59)
                                                         ---------    ---------
                                                         ---------    ---------

</TABLE>


    The accompanying notes are an integral part of these condensed consolidated
                                financial statements.

                                       3
<PAGE>

                     HCC INDUSTRIES INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (IN THOUSANDS)

<TABLE>
<CAPTION>

                                                       For the Three Months Ended
                                                       --------------------------
                                                         June 27,      June 28,
                                                           1998          1997
                                                       ------------   -----------
<S>                                                    <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)                                     $    1,631     $    (59)
Reconciliation of net earnings (loss) to net cash
  provided by operating activities:
  Depreciation                                                 395          330
  Amortization                                                 168          245
  Deferred income taxes                                         --         (285)
  Extraordinary loss                                            --        1,002
Changes in operating assets and liabilities:
     Decrease (increase) in trade accounts receivable,
     net                                                       308       (1,634)
     (Increase) decrease in inventories                       (128)         153
     (Increase) in other assets                                (94)        (211)
     (Decrease) increase in accrued liabilities             (2,103)       1,351
     (Decrease) increase in accounts payable and income 
          taxes payable                                       (764)         866
                                                       ------------   -----------
     Net cash (used in) provided by operating 
     activities                                               (587)       1,758

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property, plant and equipment                (4,016)        (694)
  Business acquisition                                          --       (2,200)
                                                       ------------   -----------
     Net cash used in investing activities                  (4,016)      (2,894)
                                                       ------------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments on long-term debt                        (231)     (79,497)
  Proceeds from issuance of long-term debt                   3,145       90,000
  Deferred financing costs                                      --       (3,700)
  Repurchases of stock                                          --       (3,728)
                                                       ------------   -----------
     Net cash provided by financing activities               2,914        3,075
                                                       ------------   -----------
Net (decrease) increase in cash and cash equivalents        (1,689)       1,939

Cash and cash equivalents at beginning of period            13,441        6,841
                                                       ------------   -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD              $   11,752     $  8,780
                                                       ------------   -----------
                                                       ------------   -----------
SUPPLEMENTAL NONCASH FINANCING ACTIVITIES:
  Capital lease obligations                                    383           --

</TABLE>

    The accompanying notes are an integral part of these condensed consolidated
                               financial statements.

                                       4
<PAGE>

                        HCC INDUSTRIES INC. AND SUBSIDIARIES
                Notes to Condensed Consolidated Financial Statements
                                   June 27, 1998

1.   INTERIM FINANCIAL STATEMENTS:

The accompanying unaudited condensed consolidated financial statements of HCC 
Industries Inc. and Subsidiaries (the "Company"), include all adjustments 
(consisting of normal recurring entries) which management believes are 
necessary for a fair presentation of the financial position and results of 
operations for the periods presented.  Certain information and footnote 
disclosures normally included in financial statements prepared in accordance 
with generally accepted accounting principles have been condensed or omitted. 
 Interim financial statements are subject to possible adjustments in 
connection with the annual audit of the Company's accounts for the full year. 
 The year end condensed balance sheet data was derived from audited financial 
statements, but does not include all disclosures required by generally 
accepted accounting principles. It is suggested that the accompanying interim 
financial statements be read in conjunction with the Company's audited 
financial statements and footnotes as of and for the year ended March 28, 
1998.  Operating results for the three month period ended June 27, 1998 are 
not necessarily indicative of the operating results for the full fiscal year.

2.   INVENTORIES:

     Inventories consist of the following (in thousands):

<TABLE>
<CAPTION>

                                                         June 27,      March 28,
                                                           1998          1998
                                                         --------      --------
  <S>                                                    <C>           <C>
  Raw materials and component parts                      $  2,225      $  2,340
  Work in process                                           2,513         2,270
                                                         --------     ---------
                                                         $  4,738      $  4,610
                                                         --------     ---------
                                                         --------     ---------
</TABLE>

3.   PROPERTY, PLANT AND EQUIPMENT:

     Property, plant and equipment consist of the following (in thousands):

<TABLE>
<CAPTION>

                                                         June 27,      March 28,
                                                           1998          1998
                                                         --------      --------
  <S>                                                    <C>           <C>
  Land                                                   $  4,032      $  3,180
  Buildings and improvements                                8,409         5,988
  Furniture, fixtures and equipment                        13,350        12,607
                                                         --------      --------
                                                           25,791        21,775
  Less accumulated depreciation                            (7,553)       (7,158)
                                                         --------      --------
                                                         $ 18,238      $ 14,617
                                                         --------      --------
                                                         --------      --------
</TABLE>

                                       5
<PAGE>

                        HCC INDUSTRIES INC. AND SUBSIDIARIES
                Notes to Condensed Consolidated Financial Statements
                                   June 27, 1998

4.   BUSINESS ACQUISITION:

On June 20, 1997, the Company acquired substantially all of the assets and 
assumed certain liabilities of Connector Industries of America, a 
glass-to-metal sealing company.  The purchase price included $2,100,000 in 
cash and a contingent payment of $400,000 based upon the volume of business 
retained in the immediately subsequent 18 month period.  In its last fiscal 
year of operations, the acquired company generated sales of approximately 
$3,200,000.  The transaction was accounted for as an asset purchase.  In 
conjunction with the acquisition, the Company assigned $1,372,000 to 
intangibles which will be amortized over a 14 year period on a straight line 
basis.  If the contingent payment becomes payable, such amount will be 
recorded as additional purchase price consideration and added to intangibles. 
 Pro forma results of operations are not provided as the impact on Company 
operations is not material.

5.   LONG-TERM DEBT:

     Long-term debt consists of the following (in thousands):

<TABLE>
<CAPTION>

                                                         June 27,      March 28,
                                                           1998          1998
                                                         --------      --------
  <S>                                                    <C>           <C>
  10 3/4% Senior Subordinated Notes - interest payable
    semi-annually; due May 15, 2007                      $ 90,000      $ 90,000

  Subordinated Notes due Selling Shareholders - 
    12% interest payable semi-annually; due March 28, 
    2001                                                    2,500         2,500
  
  Subordinated Bonus Notes - 10% interest payable 
    semi-annually; due March 28, 2001                       3,000         3,000
  
  Term loans on land, building and improvements - 
    8% interest payable monthly; due may 2008               2,762            --
  
  Other                                                     3,750         3,598
                                                         --------      --------
                                                          102,012        99,098
  Less current portion                                        928           897
                                                         --------      --------
                                                         $101,084      $ 98,201
                                                         --------      --------
                                                         --------      --------
</TABLE>

6.   CAPITAL STOCK:

The Company is authorized to issue an aggregate of 550,000 shares of common 
stock.  These shares may be issued in four different classes (A, B, C or D 
shares) which differ only in voting rights per share.  At June 27, 1998, the 
134,955 outstanding shares of common stock were designated as follows:

<TABLE>
<CAPTION>

                       Shares                       Voting Rights
       Class         Outstanding       Amount         Per Share
       -----         -----------      --------      -------------
       <S>           <C>              <C>           <C>
         A             102,653        $ 10,000             1
         B              27,506           3,000             1
         C               4,316              --          None
         D                 480              --            10
                       -------        --------
                       134,955        $ 13,000
                       -------        --------
                       -------        --------
</TABLE>

The remaining 415,045 shares of authorized but unissued common stock are 
undesignated as to class.

                                       6
<PAGE>

                        HCC INDUSTRIES INC. AND SUBSIDIARIES
                Notes to Condensed Consolidated Financial Statements
                                   June 27, 1998

7.   COMMITMENTS AND CONTINGENCIES:

ENVIRONMENTAL

As an ongoing facet of the Company's business, it is required to maintain 
compliance with various environmental regulations.  The cost of this 
compliance is included in the Company's operating results as incurred.  These 
ongoing costs include permitting fees and expenses and specialized effluent 
control systems as well as monitoring and site assessment costs required by 
various governmental agencies.  In the opinion of management, the maintenance 
of this compliance will not have a significant effect on the financial 
position or results of operations of the Company.

In August 1994, the U.S. Environmental Protection Agency ("EPA") identified 
the Company as a potentially responsible party ("PRP") in the El Monte 
Operable Unit ("EMOU") of the San Gabriel Valley Superfund Sites.  In early 
1995, the Company and the EPA executed an Administrative Consent Order which 
requires the Company and other PRP's to perform a Remedial Investigation and 
Feasibility Study ("RI/FS") for the EMOU.  In addition, the Company's 
facility in Avon, Massachusetts is subject to Massachusetts "Chapter 21E", 
the State's hazardous site clean-up program.  Uncertainty as to (a) the 
extent to which the Company caused, if at all, the conditions being 
investigated, (b) the extent of environmental contamination and risks, (c) 
the applicability of changing and complex environmental laws (d) the number 
and financial viability of other PRP's, (e) the stage of the investigation 
and/or remediation, (f) the unpredictability of investigation and/or 
remediation costs (including as to when they will be incurred), (g) 
applicable clean-up standards, (h) the remediation (if any) that will 
ultimately be required, and (i) available technology make it difficult to 
assess the likelihood and scope of further investigation or remediation 
activities or to estimate the future costs of such activities if undertaken.  
In addition, liability under CERCLA is joint and several, and any potential 
inability of other PRPs to pay their pro rata share of the environmental 
remediation costs may result in the Company being required to bear costs in 
excess of its pro rata share.

In fiscal 1997, the Company with the help of independent consultants, 
determined a range of estimated costs of $9,000,000 to $11,000,000 associated 
with the various claims and assertions it faces.  The time frame over which 
the Company expects to incur such costs varies with each site, ranging up to 
20 years as of March 28, 1998.  These estimates are based partly on progress 
made in determining the magnitude of such costs, experience gained from sites 
on which remediation is ongoing or has been completed, and the timing and 
extent of remedial actions required by the applicable governmental 
authorities.  As a result, the Company accrued $10,000,000 in fiscal 1997 for 
existing estimated environmental remediation and other related costs which 
the Company believes to be the best estimate of the liability.  As of June 
27, 1998, the accrual for estimated environmental costs was $9,576,000.

Claims for recovery of costs already incurred and future costs have been 
asserted against various insurance companies.  The Company has neither 
recorded any asset nor reduced any liability in anticipation of recovery with 
respect to such claims made.

The Company believes its reserves are adequate, but as the scope of its 
obligations becomes more clearly defined, this reserve may be modified and 
related charges against earnings may be made.

Pursuant to the Recapitalization Agreement, the Selling Group has agreed to 
indemnify the Company with respect to the after-tax costs of contingent 
environmental and other liabilities, subject to a cap for all indemnified 
liabilities of $30 million.  Pursuant to the Recapitalization Agreement, a 
$6.0 million interest bearing escrow account was established by the selling 
stockholders (the "Deferred Amount") to secure indemnity claims of the 
Company and others, including with respect to environmental liabilities.  Any 
environmental costs, net of tax benefit, are expected to be funded from the 
escrow account.  Actual expenditures for environmental remediation were 
$26,000 for the quarter ended June 27, 1998 and $381,000 for the fiscal year 
ended March 28, 1998.

                                       7
<PAGE>

                        HCC INDUSTRIES INC. AND SUBSIDIARIES
                Notes to Condensed Consolidated Financial Statements
                                   June 27, 1998

7.   COMMITMENTS AND CONTINGENCIES, Continued:

Other

On March 3, 1998, Walter Neubauer, formerly the largest shareholder of the 
Company and presently one of the largest shareholders of Special Devices, 
Inc., the Company's largest customer, filed a lawsuit in California Superior 
Court against the Company and certain other stockholders alleging (i) breach 
of fiduciary duty, (ii) fraud, (iii) negligent misrepresentation, (iv) 
negligence, (v) violations of corporations code and (vi) breach of contract. 
The allegations primarily relate to the Company's exercise of a 1995 option 
to acquire Mr. Neubauer's stock in August 1996.  The former stockholder is 
seeking damages of $40.0 million.  Based upon the Company's analysis of the 
current facts, it is management's belief that the Company should ultimately 
prevail in this matter, although there can be no assurance in this regard at 
this time.

On May 7, 1998, the Company filed a lawsuit against the former stockholder in 
California Superior Court alleging (i) breach of contract, (ii) intentional 
interference with business relations and (iii) interference with prospective 
business advantage.  All allegations relate to violations of the 
noncompetition agreement executed by the former stockholder in August 1996.  
The Company is seeking damages of $50.0 million.

In addition to the above, the Company is involved in other claims and 
litigation arising in the normal course of business.  Based on the advice of 
counsel and in the opinion of management, the ultimate resolution of these 
matters will not have a significant effect on the financial position or the 
results of operations of the Company.

                                       8
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS

RESULTS OF OPERATIONS (IN MILLIONS)

<TABLE>
<CAPTION>

                                             For the Three Months Ended
                                      ----------------------------------------
                                      June 27,            June 28,
                                        1998    Percent     1997       Percent
                                      --------  -------   --------     -------
<S>                                   <C>       <C>       <C>          <C>
Net sales                               $18.2    100.0%     $15.5       100.0%
Gross profit                              7.3     40.1%       6.2        40.0%
Selling, general and administrative 
  expenses                                2.1     11.5%       2.1        13.5%
Earnings from operations                  5.2     28.6%       4.1        26.5%
Other income/expense                     (2.5)   -13.7%      (2.5)      -16.1%
Extraordinary loss (1)                    0.0      0.0%      (1.0)       -6.5%
Net earnings                             $1.6      8.8%     $(0.1)       -0.6%

</TABLE>

(1)  Represents extraordinary loss on retirement of debt, net of tax benefit.


COMPARISON OF THE THREE MONTHS ENDED JUNE 27, 1998 ("1999 QUARTER") TO THE 
THREE MONTHS ENDED JUNE 28, 1997 ("1998 QUARTER")

NET SALES

     The Company's net sales increased by approximately 17.4% or $2.7 million 
to $18.2 million for the 1999 Quarter compared to sales of $15.5 million for 
the 1998 Quarter.  The increase was due to increasing demand in all product 
lines. Sales to existing aerospace, industrial process control, and 
petrochemical customers increased significantly in the 1999 Quarter.  Net 
non-automotive shipments increased by approximately 18% in the 1999 Quarter 
compared to the 1998 Quarter.  Based on current order volume, the Company 
expects continued growth in the aerospace, industrial process control and 
petrochemical markets.

     On the automotive side, unit shipments of airbag initiator products 
increased significantly due to increased volumes on existing programs and the 
development of some new programs.  The Company's airbag initiator shipments 
to its largest customer, Special Devices, Inc. ("SDI") increased 63% for the 
1999 Quarter compared to the 1998 Quarter.  This increased volume was 
partially offset by a price reduction effected under a new three year supply 
agreement with SDI. The new agreement with SDI was effective October 1, 1997 
and expires on December 31, 2000.  Overall, revenue from all automotive 
shipments increased approximately 16% in the 1999 Quarter compared to the 
1998 Quarter.  

GROSS PROFIT

     Gross profit increased by approximately 17.7% or $1.1 million, to $7.3 
million for the 1999 Quarter compared to $6.2 for the 1998 Quarter.  Gross 
margin increased slightly to 40.1% for the 1999 Quarter from 40.0% for the 
1998 Quarter.

     The increase in gross profit is attributable to the increased sales 
volume. The gross margin as a percent to sales was relatively unchanged in 
the 1999 Quarter compared to the 1998 Quarter.

                                       9
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS, CONTINUED

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

     Selling, general and administrative ("S,G&A") expenses remained flat at 
$2.1 million for both the 1999 and 1998 Quarters.  S,G&A expenses as a 
percent to sales decreased to 11.5% in the 1999 Quarter from 13.5% for the 
1998 Quarter.

     Selling expenses increased modestly in support of higher sales volume. 
These higher costs were offset by reductions in general and administrative 
expenses.  The improvement in the percentage of S,G&A expenses to sales 
reflects the improved leverage on the fixed portion of those expenses.

EARNINGS FROM OPERATIONS

     Operating earnings increased $1.1 million to $5.2 million for the 1999 
Quarter compared to $4.1 million for the 1998 Quarter.  Operating margins 
increased to 28.6% in the 1999 Quarter from 26.5% for the 1998 Quarter.

     The increase in operating earnings and margin was attributable to the 
same factors (as discussed above) that contributed to the increase in gross 
profit and gross margin and improvements in S,G&A expenses as a percent to 
sales.

OTHER EXPENSE, NET

     Other expense, net (which is predominantly net interest expense) 
remained flat at $2.5 million in the 1999 and 1998 Quarters.  The Company has 
$102.0 million of indebtedness as of June 27, 1998 compared to $99.1 million 
at June 28, 1997.

NET EARNINGS

     Net earnings increased by approximately $1.7 million to $1.6 million for 
the 1999 Quarter from a net loss of $0.1 million in the 1998 Quarter.

     The increase in net earnings was primarily attributable to the increase 
in gross profit and the recognition of a $1.0 extraordinary loss on 
retirement of debt in the 1998 Quarter.

LIQUIDITY AND CAPITAL RESOURCES

     Net cash used in operating activities was $0.6 million for the 1999 
Quarter compared to cash provided by operating activities of $1.8 million for 
the 1998 Quarter.  The decrease of $2.4 million was primarily attributable to 
a reduction in accrued liabilities (primarily accrued interest expense).  
Interest payments on the Company's Subordinated Notes are due in May and 
November of each year.

     Net cash used in investing activities was $4.0 million for the 1999 
Quarter compared to $2.9 million for the 1998 Quarter.  The $1.1 million 
increase was attributable to the Company's May 1998 purchase of a facility in 
El Monte, California of approximately 110,000 square feet (of which the 
Company was leasing approximately 38,000 square feet). In addition, included
in the $2.9 million of cash used in investing activities in the 1998 Quarter
was $2.2 million for the acquisition of a business which did not recur in
the 1999 Quarter.

                                       10
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS, CONTINUED

     As of June 27, 1998, the Company's outstanding indebtedness is $102.0 
million, consisting of $90.0 million principal amount of the senior 
subordinated notes, $2.5 million of subordinated notes due Selling 
Shareholders pursuant to the Contingent Note Agreement, $3.0 million of 
subordinated bonus notes pursuant to the Contingent Bonus Plan, $2.8 million 
of mortgage debt and $3.7 million of other borrowings.  The Company has a 
Revolving Credit Facility up to $20.0 million and is collateralized by 
accounts receivable and inventories.  At June 27, 1998 there was $15.7 
million available under the Revolving Credit Facility. Borrowings under the 
Revolving Credit Facility may be used for general and other corporate 
purposes.  To date, the Company has not used any amounts under the Revolving 
Credit Facility.

     The Company believes that cash flow from operations and the availability 
of borrowings under the Revolving Credit Facility will provide adequate funds 
for ongoing operations, planned capital expenditures and debt service during 
the term of such facility.  To the extent certain performance thresholds with 
respect to the Contingent Notes and Contingent Bonuses are met, and such 
obligations become vested, the Company believes that cash flow from 
operations and availability of borrowings will be sufficient to fund such 
obligations.

     Capital expenditures for fiscal 1999 are expected to focus on vertical 
integration with investments in equipment to expand manufacturing capacity 
in machining, glass production, sealing and plating, as well as automation 
equipment to lower production costs on the high volume production lines. 
Expected capital expenditures for fiscal 1999 are approximately $7.7 million 
and will be financed through working capital, the Revolving Credit Facility 
and a mortgage on the acquired El Monte property.

     This filing contains statements that are "forward looking statements", 
and includes, among other things, discussions of the Company's business 
strategy and expectations concerning market position, future operations, 
margins, profitability, liquidity and capital resources.  Although the 
Company believes that the expectations reflected in such forward looking 
statements are reasonable, it can give no assurance that such expectations 
will prove to have been correct.  All phases of the operations of the Company 
are subject to a number of uncertainties, risks and other influences, 
including general economic conditions, regulatory changes and competition, 
many of which are outside the control of the Company, any one of which, or a 
combination of which, could materially affect the results of the Company's 
operations and whether the forward looking statements made by the Company 
ultimately prove to be accurate.

                                       11
<PAGE>

PART II - OTHER INFORMATION

Items 1 through 5 are omitted as they are not applicable.

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits:  12 - Computation of ratio of earnings to fixed 
               charges

          (b)  Reports on Form 8-K  -  Not applicable



                             SIGNATURES


                                       HCC INDUSTRIES INC.


DATED:  August 10, 1998                s/s  Andrew Goldfarb
                                       --------------------------------------
                                       President and Chief Executive Officer


DATED:  August 10, 1998                s/s  Christopher H. Bateman
                                       --------------------------------------
                                       Vice President and Chief 
                                         Financial Officer

                                       12