UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                       450 Fifth Street, NW
                      Washington, DC  20549

                           FORM 10-QSB



(Mark One)
X    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                      For the quarterly period ended July 5, 1998

     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
     ACT

          For the transition period from __________ to __________

                                   Commission file number 2-69336



                           CRAMER, INC.

A Kansas Corporation              IRS Employment I.D. #48-0638707
625 Adams Street
Kansas City, Kansas  66105           Telephone No. (913) 621-6700

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 



               APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: 
4,051,400 shares of common stock, no par value.


<PAGE>



                  PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements


                           CRAMER, INC.
                          BALANCE SHEET
                            UNAUDITED
              (Amounts in $000's, except share data)

               ASSETS                   7/5/98         12/31/97
CURRENT ASSETS:
 Cash                                   $    26        $     52
 Trade receivables, net of 
   allowance of $21                       1,270             990
 Inventories                              1,260           1,242
 Prepaid expenses                           263             302
      Total current assets                2,819           2,586

PROPERTY AND EQUIPMENT:
 At cost                                   5,668          5,614
 Accumulated depreciation and 
   amortization                            4,964          4,881
      Net property and equipment             704            733

OTHER ASSETS:
 Intangible pension asset                    212            212
 Goodwill                                    197            198
 Other non current assets                    207            219
      Total Assets                      $  4,139       $  3,948

 liabilities and equity

CURRENT LIABILITIES:
 Notes payable                          $  1,192       $  1,188
 Accounts payable                            611            498
 Accrued liabilities                         629            549
      Total current liabilities            2,432          2,235

NONCURRENT LIABILITIES:
 Pension benefits payable                     513           581
 Other                                        280           234
      Total noncurrent liabilities            793           815

STOCKHOLDERS' EQUITY:
 Common stock, no par value; authorized, 
   6,000,000 shares; issued and outstanding, 
   4,051,400 shares at July 5,1998 and 
   December 31, 1997                        3,824         3,824
 Accumulated deficit                       (2,696)       (2,712)
                                            1,128         1,112
 Minimum pension liability adjustment        (214)         (214)
      Net stockholders' 
        equity                                914           898

      Total Liabilities and 
         Stockholders' Equity           $   4,139      $  3,948



<PAGE>

                           CRAMER, INC.
                       STATEMENTS OF INCOME
                            UNAUDITED
          (Amounts in Thousands, Except Per Share Data)



                            QUARTER ENDED     SIX MONTHS ENDED   
                         7/5/98    6/29/97   7/5/98    6/29/97

NET SALES                $3,276    $3,244    $6,456    $6,103
COST OF SALES             2,277     2,350     4,616     4,495
  Gross profit              999       894     1,840     1,608

OPERATING EXPENSES:
  Selling expenses          608       530     1,184       954
  General and 
  administrative            319       277       588       526
     Total operating 
     expenses               927       807     1,772     1,480

      Income from 
      operations             72        87        68       128

OTHER INCOME (EXPENSE):
  Interest expense, net     (22)      (23)      (47)      (47)
  Other, net                (31)      (11)        5         5
     Total other income 
     (expense)              (53)      (34)      (52)      (42)

INCOME BEFORE INCOME TAXES   19        53        16        86
INCOME TAX EXPENSE            0         0         0         0

NET INCOME               $   19    $   53    $   16    $   86

     Net income per 
     share based on weighted 
     average number of 
     common equivalent 
     shares outstanding
     - basic and diluted  $0.01    $0.01     $ 0.01    $  0.02
 

     Weighted Average Common
     Equivalent Shares 
     Outstanding
                  Basic   4,051,400  3,840,650  4,051,400  3,840,650
                  Diluted 4,051,400  3,855,317  4,051,400  3,855,317


There is no difference between Net Income and Total Comprehensive
Income for the quarter or six month periods ending July 5, 1998
and June 29,1997


<PAGE>



                           CRAMER, INC.
                     STATEMENTS OF CASH FLOWS
                            UNAUDITED
                       (Amounts in $000's)



                                               SIX MONTHS ENDED
                                             7/5/98    6/29/97

Cash flows from operating activities:
  Net income                                 $    16   $    86
  Adjustments to reconcile net 
     income to net cash provided 
     by operating activities:
       Depreciation and amortization              96       101
       Changes in operating assets 
        and liabilities:
          Accounts receivable                   (280)       31
          Inventory                              (18)      (37)
          Prepaid expenses                        39        10
          Accounts payable and accrued expenses  193      (106)
               Other noncurrent liabilities      (22)      (63)

          Net cash provided by operating 
               activities                         24        22

Cash flows from investing activities:
     Capital expenditures                        (54)      (69)

Cash flows from financing activities:
     Principal payments on notes payable 
       and long-term notes                    (1,834)   (4,284)
     Proceeds from issuance of notes 
       payable and long-term notes             1,838     4,312

          Net cash provided by financing 
               activities                          4        28

Net increase (decrease) in cash                  (26)      (19)
Cash at beginning of year                         52       117

Cash at end of period                        $    26   $    98

Supplemental disclosures:
     Cash paid during the period for:
          Interest                           $    47   $    45
          Income tax                         $     0   $     0



<PAGE>



ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS

          Except for the historical information contained herein,
     this report on Form 10-QSB contains forward-looking
     statements that involve risk and uncertainties.  The
     Company's actual results could differ materially. In
     connection with the "safe harbor" provisions of the Private
     Securities Litigation Reform Act of 1995, Cramer, Inc.
     reminds readers that there are many important factors that
     could cause the Company's actual results to differ
     materially from those projected in forward-looking
     statements of the Company made by, or on behalf of, the
     Company.  When used in this Form 10-QSB and in other filings
     by the Company with the Securities and Exchange Commission,
     in the Company's press releases and in oral statements made
     with the approval of an authorized executive officer, words
     or phrases such as "will likely result", "are expected to",
     "will continue", "is anticipated", "estimate", "project" or
     similar expressions are intended to identify forward-looking
     statements.  The Company wishes to caution readers not to
     place undue reliance on such forward-looking statements.

          There are a number of reasons why investors should not
          place undue reliance on forward-looking statements. 
          Among the  risks and uncertainties that could cause the
          Company's actual results for future periods to differ
          materially from any forward-looking statements made are
          the following:
       
               Fluctuations or reductions in product demand and
               market acceptance
               The level of product development by the Company
               Capacity and supply constraints or difficulties
               The results of financing efforts
               The effect of new laws and regulations
               Unexpected additional expenses or operating losses
               Competition
               The Company's reliance on certain vendors for key
               components.

          The foregoing list of risks and uncertainties is not
     meant to be complete.



     A.   Summary of Operations

          The intake of new orders were $6,818,000 in the first
          half of 1998 as compared to $6,182,000 in the same
          period in 1997, an increase of 10%.  The increase
          reflects the continued strengthening of the Company's
          seating and utility products business.  At $6,456,000
          net sales for the first half of 1998 were $353,000 or
          6% larger than for the same period in 1997. 


<PAGE>



          At July 5, 1998, the Company's backlog of unfilled
          orders was $1,168,000, an increase of $362,000 from the
          level at December 31, 1997.  Approximately $200,000 of
          the Company's backlog is scheduled to ship in the
          months of September and October with the remainder
          being scheduled to ship in the coming month.
          
          The Company's gross margin in the first half of 1998
          increased by $232,000 from the level in the first half
          of 1997.  As a percentage of sales, margins improved
          from 26.4% to 28.5%.  The improvements in margins
          reflects sales price increases instituted in the summer
          of 1997 and improved manufacturing efficiency achieved
          as a result of the increased sales volume.

          Selling expenses were $1,184,000 in the first half of
          1998, an increase of $230,000 as compared to the first
          half of 1997.  Approximately $42,000 of the increase
          represents commissions and similar costs that vary
          directly with sales volume.  Of the remaining increase,
          $173,000 relates to the ongoing introduction costs for
          the Company's new articulating keyboard product.  

          General and administrative expenses during the first
          half of 1998 increased by $62,000 when compared to the
          first half of 1997.  The increase consists primarily of
          additional engineering expenses incurred to expand the
          Company's product offering and to shorten the new
          product development process.
          
          Primarily as a result of the increase in selling
          expenses, income from operations in the first half of
          1998 decreased by $60,000 as compared to the results in
          the first half of 1997.
          
          While the results for the first half of 1998 were lower
          than in the same period in 1997, management believes
          that 1998's year-end results will improve on those
          realized in 1997.  The increase in new order intake and
          net sales are anticipated to continue throughout the
          remainder of 1998 as the Company realizes the benefit
          of new products introduced in the first half of the
          year.  Furthermore, the introductory costs associated
          with the Company's new articulating keyboard product
          are expected to fall in proportion to sales volume as
          the distribution of this product line is established
          and as technical enhancements to the product are
          completed.
          
          
     B.   Financial Condition, Liquidity, and Capital Resources

          The Company's trade accounts receivables increased by
          $280,000 from December 31, 1997 to July 5, 1998.  The
          Company shipped several unusually large orders in the
          last three weeks of the 1998 2nd quarter.  In
          accordance with the Company's normal terms of sale,
          these amounts were not yet due at quarter end.
          


<PAGE>


          Inventory increased by $18,000 during the first half of
          1998. Management has increased the Company's stock of
          component parts in order to support the shipment of
          three new chair lines and one new ladder line
          introduced during the second quarter of this year.
          
          Capital expenditures were held in tight control and
          aggregated only $54,000 during the first half of 1998. 
          Purchases during the period consisted primarily of
          factory tooling.  The rate of capital equipment
          purchases is anticipated to increase during the
          remainder of 1998 as enhancements to the Company's
          manufacturing equipment and the purchase of  tooling
          necessary for additional new product introductions are
          completed.
          
          The Company's accounts  payable increased by $113,000
          from the December 31, 1997 level.  The increase is the
          result of a slight increase in the aging of vendor
          balances prior to payment.
          
          The Company continues to participate in a consolidated
          cash management and credit facility with its parent,
          Rotherwood (see discussion in Note 3 to the Financial
          Statements in the Company's 1997 Form 10KSB). 
          Management believes that the Company's access to this
          facility, along with existing cash balances and cash
          generated from future operations, will be adequate to
          meet future operating requirements and liquidity needs.
          
          

<PAGE>



                   PART II.  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

          The Company is a defendant in several lawsuits relating
          to product liability claims arising from accidents
          allegedly occurring in connection with the use of its
          products.  The claims are covered by insurance and are
          being defended by the Company's independent counsel or
          by counsel assigned by the Company's insurance
          carriers, but are subject to deductibles ranging from
          $0 to $100,000.  A number of the claimants allege
          substantial damages.  While management believes the
          Company has substantial defenses with respect to the
          claims, the ultimate outcome of such litigation cannot
          be predicted with certainty.  The Company has
          reasonably estimated and accrued in its financial
          statements its portion of the deductible as a product
          liability contingency.  Such claims are an ordinary
          aspect of the Company's business.


ITEM 2.   CHANGES IN SECURITIES

          None.



ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          None.



ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          On April 17, 1998, the Company solicited proxies
          concerning the election of Directors at a meeting held
          on May 18, 1998.



ITEM 5.   OTHER INFORMATION

          None.


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          None.



<PAGE>



                            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.



                                        CRAMER, INC.
                                        (Registrant)



Date: August 12, 1998                   /s/ Gary A. Rubin
                                        Gary A. Rubin
                                        Vice President, Finance &
                                        CFO