U.S. Securities and Exchange Commission

                         Washington, D.C. 20549
                                                                CONFORMED
                                Form 10-KSB
(Mark One)
    [X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

          For the fiscal year ended      June 30, 1998     
                                    OR
  [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

      For the transition period from                        

      Commission File Number        0-15545               

                     Logitek, Incorporated     
        (Name of small business issuer in its charter)

               New York                       No. 11-2203507
       (State or other jurisdiction of              (I.R.S. Employer
      incorporation or organization)              Identification No.)

  101 Christopher St., Ronkonkoma, N.Y.             11779      
 (Address of principal executive offices)          (Zip Code)

Registrant's Telephone Number, including area code     516-467-4200   

Securities registered pursuant to Section 12(b) of the Act:
 Title of each class         Name of each exchange on which registered

          None                                     None            

Securities registered pursuant to Section 12(g) of the Act:

                        Common Stock, $.01 par value   
                             (Title of class)
Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Securities 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 pursuant to Item 405 of
Regulation S-B 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 ]

Issuer's revenues for its most recent fiscal year:    $4,815,518 
The aggregate market value of voting common stock held by non-affiliates, 
computed based upon the average of the closing bid and asked prices on 
August 18, 1998 was $2,537,144.  As of August 18,1998, there were
3,382,859 shares of common stock outstanding (of which 1,884,882 shares 
were held by non-affiliates).
                                    
     Documents Incorporated by Reference: 1998 Proxy Statement

<PAGE>
                           

                               LOGITEK, INC.
                  FORM 10-KSB -  Year Ended June 30, 1998

                             TABLE OF CONTENTS 


  PART I                                                       Page

Item 1. Business                                                 3
Item 2. Properties                                               6
Item 3. Legal Proceedings                                        6
Item 4. Submission of Matters to a Vote of Security
        Holders                                                  6

PART II 
Item 5. Market for Registrant's Common Equity
        and Related Stockholder Matters                          7
Item 6. Management's Discussion and Analysis of
        Financial Condition and Results of Operations            8
Item 7. Financial Statements and  Supplementary Data            10
Item 8. Changes In and Disagreements with Accountants
        on Accounting and Financial Disclosure                  10

PART III
Item 9. Directors and Executive Officers of
        the Registrant                                          11
Item 10.Executive Compensation                                  11
Item 11.Security Ownership of Certain
        Beneficial Owners and Management                        11
Item 12.Certain Relationships and Related
        Transactions                                            11
Item 13.Exhibits and Reports on Form 8-K                        11
        Signature Page                                          12
        Report of Independent Certified Public
        Accountants                                             13
        Financial Statements                                    14
        Notes to Financial Statements                           17


<PAGE>
 
                                 PART I  

ITEM 1.  BUSINESS 
General 

Logitek, Inc. (the "Company"), a New York
corporation, organized in 1969, is engaged
in the design, development and production
of electronic monitors and controls which
include electronic time delays, flashers, and
voltage, frequency, phase and power
monitors and switch mode power supplies. 
Power monitors are generally used to
continuously and automatically monitor the
characteristics of electrical power systems
for conformance to design limits in order to
insure proper and safe operation of
equipment which utilize the monitored
power.  These devices provide for timed
control of system shutdown and transfer in
addition to visual fault annunciation. 
Although the Company manufactures
products "built to specifications" most of its
sales are for its standard products.   
  
The Company developed and manufactures
a line of time delay relays designed to cause
a system to perform or not to perform a
specific function for, during or after a
precise interval of time.  The time delay
relay is used in those instances, among
others, where a system must be turned on
for a specific period of time after application
of power and then shut down; where it is
necessary to operate a system for an interval
of time after the complete loss of power; or
to regulate the precise time interval between
various functions.  Among its practical
applications, time delay relays are used in
navigation systems of missiles and in radar
equipment as well as to sequence aircraft
functions.  When the navigation system in a
missile or projectile determines that the
missile or projectile is off course, a signal
may be applied to a time delay relay.  If the
missile returns to course prior to the
expiration of the preset time delay, the
signal is removed and the timer does not
operate.  If the missile remains off course
for a period of time greater than the preset
interval of the time delay relay, the time
delay relay will activate causing the missile
to self destruct.  Some elements of certain
types of radar equipment can be damaged if
high voltage is applied prior to sufficient
warm-up time. These elements can be
protected by the use of time delay relays
which provide an automatic time delay
between the application of warm-up voltage
and high voltage.  These devices may also
be used to sequence the time interval
between the ejection of external  fuel pods
on  fighter aircraft.  The relays vary in price
from approximately $100 to $700 depending
on the type of function and complexity
required; however, most time delay relays
sell for $150 to $300.  

The Company has also developed and
produces solid state flashers designed to
cause an alternating electrical impulse.  The
flasher may be used to cause aircraft
position lights to flash on and off as well as
to sense and indicate a malfunction in certain
systems by causing a warning light to
flash/or activate an alarm device.  The
flasher varies in price from $100 to $500
depending on the type of function and
complexity required with most types of
flashers selling in the $125 to $225 range.

The Company has also designed and markets
equipment to monitor the characteristics of
the phase, voltage and frequency elements of
electric power.  These devices are connected
to electric power lines to monitor each of the
aforesaid input elements for deviation from
acceptable limits and can find application in
most electrical systems, machinery and
equipment where power source performance
is questionable and/or where equipment
damage may result from inadequate or
improper power.  The acceptable limits of
deviation of each element are pre-determined
and built into the monitor.  The Company
has also developed and manufactures power
monitors used to sense all three of the
aforesaid power elements.  In the event that
any element is not within pre-determined
specifications, the monitor shuts down the
system, transfers to another system and/or
operates an alarm.  The Company also
manufactures each of the aforesaid types of
monitors with time delay features.  These
types of monitors allow a deviation beyond
specified limits for a specified pre-set period
before initiating appropriate action.  The
internal time delay thereby prevents
unnecessary system response.  In the event
the system is activated, the element must
return to normal limits for a minimum pre-
set period before the power will resume
normal flow.  This equipment is presently in
use in auxiliary generating systems in planes
and ships to prevent damage to the
equipment operated by such systems.  Phase,
voltage and frequency sensors vary in price
from $300 to $900 and the power monitors
from $900 to $7,000 depending on the type
of function and complexity required.

The Company has designed and markets
switch mode power supplies for military,
industrial and commercial applications. 
These power supplies are used to convert
AC voltage to DC voltage or to convert DC
voltage to a different level of DC voltage for
use by various types of electronic
equipment.  Power supplies vary in price
from $400 to $3,000 depending on the
function, complexity and power levels
involved.  The Company markets 13 basic
models within this product line and
approximately 424 different sub-models.  In
addition, the Company will modify these
power supplies to customer specification for
an additional cost.  

The components of the Company's products
include integrated circuits,transistors,diodes,
relays, resistors, capacitors and metal
casings which are purchased from a variety
of readily available sources on an as needed
basis.  The Company has not experienced
delays in obtaining any required materials.

The widest application of the Company's
products is in  systems such as aircraft and
space vehicles, aboard ships, vehicular
mobile communications,radar systems,and
data processing and telecommunication
systems.  The Company's products are sold
to major system manufacturers and to the
United States Government.  Customers
include General Dynamics  Falstrom,
Boeing, Lockheed, McDonnel Douglas, E-
Systems, Westinghouse and Hughes Aircraft.
In terms of competition in the product line
of power moniotors, to the best of the
Company's knowledge there are companies
similar to Logitek and the Company is aware 
of four or five of these companies. In the
product line of power supplies there are
many competitors in the broad scope, but in
Logitek's niche market the field is
significantly narrowed. Logitek has a
trademark on its name but does not have any
patents.

The Company's backlog as of June 30, 1998
was approximately $ 2,192,000 as compared
to $2,500,000 as of June 30 1997.

Sales made directly to government agencies
are effected primarily through competitive
bidding and to a lesser extent are a result of
negotiated contracts.  Other sales arise
principally through personal solicitations by
the Company's personnel and also through
independent sales representatives who are
compensated solely on a commission basis. 

During the year ended June 30,1998  sales
to major customers were as follows: Boeing
Aircraft 22%, various agencies of the U.S.
Government 16%, Falstrom 8% and various
affiliates of the Loral group 7%. During the
year ended June 30,1997 sales to major
customers were as follows: Boeing Aircraft
14%, various agencies of the U.S.
Government 21% and various agencies of
the Loral group 22%.
It should be noted that each of these major
customers is comprised of a group of
separate and distinct business units that make
up the total sales. While it is possible one or
more of the Company's major customers
might someday choose another vendor, the
Company feels this is highly unlikely.
However, should all the major customers
leave, the impact on the financial statements
would be a decrease in sales of
approximately 53%.
All government contracts or subcontracts are<PAGE>
subject to cancellation by the government or
it's subcontractor at or for the convenience
of the government.  In the event of contract
termination, the Company would ordinarily
be entitled to recover payment for its costs
and a reasonable pro rata share of profit
based on work completed prior to
termination.  

Current research is focused on the
continuous upgrading of current products,
development of new switch mode power
supplies and a high density power supply.
During the two fiscal years ended June 30,
1998 and 1997, the Company expensed
approximately $246,000 and $221,000,
respectively, on research and development.

As of June 30, 1998 the Company had
approximately 50 employees,of which one
was a part time employee.

The following table sets forth the
approximate percentage each of the
Company's product lines contributed to total
sales for the periods indicated:<PAGE>


BREAKDOWN OF GROSS SALES
For the years ended June 30,              1998          1997

                           
                                           %              % 

Time delay relays                         13.1          14.1
Flashers                                   1.5           4.8
Power supplies                            27.5          24.8
Voltage, frequency and
 phase sensor relays
 and power monitors                       51.8          55.0
Contract manufacturing & Other             6.1           1.3

Company Totals                           100.0         100.0


ITEM 2.  PROPERTIES 

The Company's executive offices and
production facilities are located in a one
story free standing building comprising
approximately 20,000 square feet, such
building is owned by the Company.  The
building is located on approximately one and
one-half acres of land in Ronkonkoma, New
York.  The property is subject to a mortgage
held by the New York Job Development
Authority ("JDA"), payable in monthly
installments as of June 30, 1998 of
approximately $2,656, including interest at
8.25% through June 2004 and a subordinate
mortgage to Long Island Development
Corp., payable in monthly installments of
$4,427 including interest at 14.296%
through June 2004.  As of June 30, 1998 the
JDA mortgage had a balance of $135,632
and the subordinate mortgage had a balance
of $208,253.

Located at the Company's facilities are
testing apparatus, machinery and equipment
including oscilloscopes, differential
voltmeters,spray painting equipment,
production electrical test fixtures,auto test
and manufacturing equipment, environmental
and vibration test equipment and other
items.  Certain of this equipment is pledged
as collateral for three leases payable in
monthly  installments of $1,123,$573 and $
1,118 through June 2001, March 2002 and
February 2003,.  In addition, the Company
has given a security interest to a lender
covering all fixed assets, accounts receivable
and inventory on $47,000 of debt with
monthly payments of $5,750, plus interest at
prime plus 2% as of June 30, 1998.






ITEM 3.  LEGAL PROCEEDINGS 

None. 


ITEM 4.  SUBMISSION OF MATTERS
TO A VOTE OF SECURITY HOLDERS 
No matters were submitted to a vote of
security holders through the solicitation of
proxies or otherwise during the fourth
quarter of fiscal 1998.<PAGE>
     


                             PART II 


      ITEM 5.  MARKET FOR REGISTRANT'S  COMMON EQUITY AND RELATED 
                          STOCKHOLDER MATTERS 

The Company's common stock, $.01 par
value (the "Common Stock"), was traded on
the National Association of Securities
Dealers Automated Quotation System
("NASDAQ") under the symbol "LGTK"
until May, 1992. The Common Stock was
delisted when NASDAQ increased its
minimum capital, surplus and stock price
requirements and the Company was unable
to meet such requirements.  The Common
Stock currently trades in the over-the-
counter market.  The table which appears
below sets forth the quarterly range of high
ask and low bid prices for the Common
Stock for the periods indicated, as reported
by The National Quotation Bureau, Inc.

The figures shown  represent "inter-dealer"
prices without adjustment for markups,
markdowns or commissions and may not 
necessarily represent actual transactions.<PAGE>
On August 18, 1998 the closing bid and
asked prices  for  the  Common  Stock 
were  $.69 and $.81 per share, respectively. 
As of August 18, 1998 there were 3,382,859
shares of Common Stock outstanding and
approximately 120 record holders of
Common Stock, which includes stock being
held by brokers in street name. The
Company has never paid cash dividends on
its Common Stock and does not intend to do
so for the foreseeable future.  It is
anticipated that earnings, if any, will be
retained to finance the Company's growth. 
Future payments of cash dividends, if any,
will be determined by the Board of Directors
based upon circumstances then existing,
including contractual restrictions, financial
condition, capital requirements and business
outlook of the Company.<PAGE>
<PAGE>



Quarter Ended               Ask Price - High           Bid Price - Low

September 30, 1996                 7/8                     1/2
December 31, 1996                  7/8                     1/2 
March 31, 1997                   25/32                    9/16
June 30, 1997                    15/16                    9/16
September 30, 1997               27/32                   21/32    
December 31, 1997                29/32                     5/8 
March 31, 1998                   27/32                   17/32
June 30 , 1998                  31 /32                     5/8

<PAGE>


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS 
                                    
General 

The Company reported a net profit after tax
of $400,790 for the year ended June
30,1998 compared to a $324,566 profit for
the year ended June 30, 1997.   

Results of Operations
Comparison of Fiscal Years Ended June 30,
1998 and 1997

Sales for fiscal 1998 were $4,815,518
compared to $4,157,472 for the prior year,
or a 16% increase of $658,046. The increase
was due primarily to additional sales as a
result of new product lines. The Company
has also begun to utilize fully automated test
and automatic assembly equipment  and has
redesigned certain of its products to take
advantage of the more cost effective surface
mount manufacturing technologies.

Gross profit margins were 40.8 % and
38.7% for the twelve month periods ended
June 30, 1998 and 1997. This reflects the
Company's committment to manufacturing
its products in a more efficient manner, as
well as close cost containment.

Operating expenses for fiscal 1998 were
approximately $1,329,000 compared to
$1,188,000 or a increase of $141,000. Of
this increase,research and development
expenses accounted for approximately 
$25,000. This increase  reflects the
Company's ongoing design efforts including
upgrading existing designs and completing
design of certain unfinished models of the
standard power supply products. These efforts
also include modifications in order to improve
manufacturing efficiency. Additional efforts
are contemplated to continue design of the
MC series high density power supply. The
remaining $ 116,000 consists of  numerous
overhead items, but primarily a $61,000
increase in sales expenses. Of this amount,
sales commissions were $16,000 and
advertising was $45,000.   

Interest expense decreased approximately 3%
due to decreased borrowing levels.  During the
past twelve month period the Company has
reduced total debt by $168,153.  The Company
will now be required to service its two
mortgages on the building and a term loan
with a  balance of $47,000  as of June 30, 1998
(see Note 7 ). In June 1995 and October 1995
the Company decided to borrow $ 65,000 and
$47,500 in order to pay off its remaining
equipment leases and to purchase additional
new equipment as part of its plan to
streamline its operations and to make more of
the manufacturing an automatic  process
rather than labor intensive. Both of these
loans were paid off in the year ended June 30,
1998. 

Legal expenses of $29,000 for the twelve
month period ended June 30, 1998 were for
normal ongoing legal matters, compared to
$47,000 for the year ended June 30, 1997. The
Company has made a settlement on a
trademark  infringement  suit. The settlement
is for $105,000 of which $55,000 was collected
in the year ended June 30,1996 and the
remaining $50,000 was collected during the
year ended June 30,1997.

The Company's effective tax rate of 30.3%
differs from the statutory tax rate of 34% due
principally to the impact of a deferred tax , 
utilization of federal tax credits and a state
income tax provision.  

Liquidity and Capital Resources

Total borrowings were $488,358 and $605,680, 
at June 30, 1998 and 1997, respectively, which
represent decreases of $168,153, or 28%, and
$123,284 or 17%, for the latest two twelve
month periods.  As of June 30, 1998 the
Company has decreased total debt, accounts
payable and accrued expenses by
approximately $102,000 . As of June 30,1997
the Company had decreased total debt,
accounts payable and accrued expenses by
$211,000. During this two year period the
Company has built its cash reserves to
approximately $430,000 as of June 30, 1998.

During the year ended June 30,1998, the
Company increased its cash by about $36,000
through its operating activities primarily from
its net income and depreciation.The Company 
used its cash to purchase equipment of
$41,000 and paid down debt by approximately 
$168,000.

The Company is not aware of any
committments or contingencies that are likely 
to have a material impact on the financial 
statements.
  
Due to the Company's current cash resources
of $430,000 and its continued profitability the
Company does not anticipate a need for
additional outside financing.  <PAGE>

Year 2000 Issue

The Year 2000 Issue is the result of computer
programs being written using two digits rather
than four to define a specific year. Absent
corrective actions, a computer program that
has date sensitive software may recognize a
date using "00" as the year 1900 rather than
the year 2000. This could result in system
failures or miscalculations causing disruptions
to various activities and operations.

The Company has performed an assessment of
major information technology systems and
expects that all necessary replacements will be
completed in a timely manner to ensure that
systems are Year 2000 compliant.

The Company believes the cost of
administering its year 2000 compliance plan
will not have a material adverse impact on
future earnings.

Directors Fees

The Board of Directors meets annually as well
as on an interim basis as the need arises. All
Directors, with the exception of Mr. Herbert
Fischer are paid $ 150 per meeting for their
services.


<PAGE>
<PAGE>

ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 

The Company's financial statements and  notes thereto, are included in 
this Report on Form 10-KSB as follows:


                               Index 


Item                                                          Page Number

Report of Independent Certified Public Accountants                13

Balance Sheets as of June 30, 1998 and 1997                       14

Statements of Income for the Years
  Ended June 30, 1998 and 1997                                    15

Statements of Stockholders' Equity for the Years                  16 
  Ended June 30,1998 and 1997                                     

Statement of Cash Flows for the Years                             17   
  Ended June 30,1998 and 1997        

Notes to Financial Statements                                     18  


ITEM 8. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable<PAGE>



                                 PART III

ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Incorporated by reference to the Company's 1998 Proxy statement.

ITEM 10.  EXECUTIVE COMPENSATION

Incorporated by reference to the Company's 1998 Proxy statement.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

Incorporated by reference to the Company's 1998 Proxy statement.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Incorporated by reference to the Company's 1998 Proxy statement.

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits
       
           None.  
       
     (b) Reports on Form 8-K 
  
           None.
<PAGE>

                                SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 
1934, the Registrant has duly caused this registration statement to be 
signed on its behalf by the undersigned, thereunto duly authorized.


          LOGITEK, INC.


                    By: /s/Herbert L. Fischer              
                                  Herbert L. Fischer
                                  President




Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the 
Registrant and in the capacities and on the dates indicated.


                    /s/  Herbert L. Fischer           
                         Herbert L. Fischer
                           President and
                    Principal Executive Officer
                         






                 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


     
To the Board of Directors and
Stockholders of Logitek,Inc.

We have audited the accompanying balance sheets of Logitek, Inc. as of June 
30, 1998 and 1997,and the related statements of income and retained earnings 
and cash flows for the years then ended. These financial statements are the 
responsibility of the Company's management. Our responsibility is to express 
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit includes examining,on a test basis, 
evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and 
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a 
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly,
in all material respects,the financial position of Logitek, Inc. as of June 
30, 1998 and 1997, and the results of its operations and its cash flows for 
the years then ended in conformity with generally accepted accounting 
principles.


                                                    Marcum & Kliegman LLP



Woodbury, New York
September 4,1998
                     

                               LOGITEK, INC. 
                              BALANCE SHEETS 

                                                            June 30,       

ASSETS                                                 1998         1997
Current Assets:
Cash and cash equivalents                            $429,713     $393,797
Accounts receivable                                   676,704      422,549
Inventories                                         1,061,103    1,046,082
Prepaid expenses and other current assets              15,332       34,292
Due from officer                                            0       30,500
    Total Current Assets                            2,182,852    1,927,220
Property, Plant, and Equipment, net                   680,134      668,861
Deferred income taxes,state                             7,000            0
Goodwill                                               34,441       34,441
Other Assets                                           48,695       36,323
    TOTAL ASSETS                                   $2,953,122   $2,666,845

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt                     $90,525     $145,182
Capitalized lease obligation, current                  22,123       11,783
Accounts payable                                      324,736      385,882
Accrued expenses and taxes                            194,398      154,507
    Total Current Liabilities                         631,782      697,354
Capitalized lease obligation, less current portion     75,350       50,119
Long-term debt, net of current portion                300,360      398,596
Deferred income taxes payable                          52,000       15,380
     TOTAL LIABILITIES                              1,059,492    1,161,449

COMMITMENTS 
 
STOCKHOLDERS' EQUITY 
Common stock, $.01 par value; authorized
 10,000,000 shares; issued 3,600,000 shares,
 of which 217,141 and 187,941  shares 
 are held in treasury,respectively                     36,000        36,000
Capital in excess of par value                        280,355       280,355
Retained earnings                                   1,597,483     1,196,693
                                                    1,913,838     1,513,048 
Less: Treasury Stock at cost                           20,208         7,652
Total Stockholders' Equity                          1,893,630     1,505,396
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $2,953,122    $2,666,845


   The accompanying notes are an integral part of the financial statements.    <PAGE>

                               LOGITEK, INC. 
                          STATEMENTS OF INCOME 
                       For the Years Ended June 30,

                                                      1998         1997  
Net sales                                          $4,815,518   $4,157,472
Cost of goods sold                                  2,852,002    2,549,797
  Gross profit                                      1,963,516    1,607,675
Operating expenses:
 Selling                                              352,567      291,034
 General and administrative                           730,726      675,343
 Research and development                             245,912      221,180
  Total operating expenses                          1,329,205    1,187,557
  Income from operations                              634,311      420,118
Other income (expense):
Interest expense                                      (78,882)     (81,300)
Interest income                                        19,361       10,748
Other income                                                0       50,000 
  Total other expense                                 (59,521)     (20,552)

  Income before income taxes                          574,790      399,566

Income tax expense                                    174,000       75,000

  Net income                                         $400,790     $324,566




Per Share Amounts:
Basic earnings per share                                $.12        $.10 
Diluted earnings per common share                       $.11        $.09 
 


         
 
The accompanying notes are an integral part of  the financial statements.

<PAGE>
                                     



                                        LOGITEK INC.
                            Statements of Stockholders' Equity
                     For the Years Ended June 30,1998 and 1997      



                       Common Stock   Capital in    Retained Treasury
                       Shares Amount Excess of Par  Earnings Stock    Total


Balance at       3,424,000 $36,000 $280,355   $872,127  $(5,500)  $1,182,982
 July 1,1996
Net earnings                                   324,566               324,566

Purchase of 
 Treasury Stock    (11,941)                              (2,152)     (2,152) 
        

Balance at        3,412,059 $36,000 $280,355 $1,196,693 $(7,652)  $1,505,396 
  June 30,1997
Net earnings                                    400,790              400,790

Purchase of 
  Treasury Stock   (29,200)                              (12,556)    (12,556)

Balance at        3,382,859 $36,000  $280,355 $1,597,483 $(20,208) $1,893,630 
  June 30,1998





    The accompanying notes are an integral part of the financial statements    






                                LOGITEK, INC.  
                         STATEMENTS OF CASH FLOWS 
                       For the Years Ended June 30,

                                                       1998          1997

Cash Flows from Operating Activities:
Net income                                           $400,790      $324,566
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation                                           80,978        91,441
(Increase) decrease in operating assets:
Accounts receivable                                  (254,155)      (93,748)
Inventories                                           (15,021)       28,008)
Prepaid expenses and other current assets              18,960          (351)
Other assets                                          (12,372)       (3,212)
Increase (decrease) in operating liabilities:
Accounts payable                                      (61,146)      (78,007)
Accrued expenses and taxes                             70,391       (12,054)
Deferred income taxes payable                          29,620         9,000
      Total adjustments                              (142,745)     (114,939)
 Net cash provided by operating activities            258,045       209,627
Cash Flows from Investing Activities
Purchases of property,plant and equipment             (41,420)      (39,373)
   Net cash used in investing activities              (41,420)      (39,373)
Cash Flows from Financing  Activities:
Repayment of long-term debt                          (168,153)     (148,284)
Proceeds from long-term debt                                0        25,000 
Purchase of treasury stock                            (12,556)       (2,152)
   Net cash used in financing activities             (180,709)     (125,436)
Net increase  in cash and equivalents                  35,916        44,818
Cash and cash equivalents, beginning of year          393,797       348,979
Cash and cash equivalents, end of  year              $429,713      $393,797
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION
  Cash paid during the years for:
   Interest                                           $68,966      $72,400
   Income taxes                                      $174,000      $75,000

               Noncash Investing and Financing Activities
During the year ended June 30,1998, a lease payable of $50,831 was incurred 
when the Company purchased equipment. During the year ended June 30, 1998 
an advance to the Company president was written off against a bonus payable 
to him which was accrued for at June 30, 1998. During the year ended June 
30, 1997 a lease payable of $23,695 was incurred when the Company purchased 
equipment.
               
   The accompanying notes are an integral part of the financial statements  

                                  
                              LOGITEK, INC. 
                      Notes to Financial Statements 
NOTE 1 - Description of Business and Summary of Significant Accounting 
Policies:
Description of business: 

Logitek, Inc. ("the Company") is engaged in the design, development and 
production of electronic power monitoring equipment and electronic power
supplies.  The Company sells its products and provides services to domestic
customers, and to a lesser extent to international customers, and to the 
United States government.

Accounts Receivable

Accounts receivable have been adjusted for all known uncollectible accounts.
An allowance for doubtful accounts is not provided since, in the opinion of 
management, all accounts recorded on the books are deemed collectible.

Revenue recognition: 

The Company recognizes sales when merchandise is shipped.  For contracts 
subject to Department of Defense regulations, the Company recognizes revenue 
when the earnings process is deemed completed.  

Inventories: 

Inventories are carried at the lower of cost (based on a moving average) or 
market.

Property,plant and equipment and depreciation: 

Property, plant and equipment is recorded at cost.  Expenditures for major 
renewals and betterments to property and equipment are capitalized, and 
expenditures for maintenance and repairs are charged to operations as 
incurred.  When assets are retired or otherwise disposed of, their cost and
related accumulated depreciation are eliminated from the accounts.  Any
resulting gain or loss is reflected in income.  Depreciation is provided 
using the straight-line method over the estimated useful lives of the 
related assets, which are as follows:
         Buildings and improvements               15 to 31.5 years
         Machinery and equipment                   5 to  7 years
         Furniture and fixtures                         5 to  7 years
         Automobiles                                    5 years
Goodwill: 

Goodwill that arose from a 1969 acquisition, is  being reviewed  by 
management as to its continuing value. The Company believes its value has 
diminished in recent years and is contemplating writing this off to earnings 
in the near term.
 


                                  LOGITEK,INC.
                            Notes to Financial Statements
Note 1-Description of Business and Summary of Significant Accounting Policies
Income Taxes:

Deferred income tax assets and liabilities are computed annually for 
differences between the financial statement and tax bases of assets and 
liabilities that will result in taxable or deductible amounts in the future 
based on enacted tax laws and rates applicable to the periods in which the 
differences are expected to affect taxable income.  Valuation allowances are
established when necessary to reduce deferred tax assets to the amount 
expected to be realized.  Income tax expense is the tax payable or 
refundable for the period plus or minus the change during the period in 
deferred tax assets and liabilities.Tax credits are accounted for on the 
flow-through method.

Research and development costs: 

Research and development costs are expensed as incurred.

Cash and cash equivalents: 

The Company considers all highly liquid debt instruments purchased with a 
maturity date of three months or less to be cash equivalents.  At June 30, 
1998 and June 30, 1997 the Company has  cash deposits in banks in excess of 
the maximum amount insured by the Federal Deposit Insurance Corp.

Net earnings per common share: 

In February 1997, the Financial Accounting Standards Board ("FASB") issued 
Statement of Financial Accounting Standards No. 128 "Earnings per Share" 
("SFAS 128"), which establishes standards for computing and presenting 
earnings per share. The new standard replaces the presentation of primary 
earnings per share prescribed by Accounting Principles Board Opinion No. 15
 "Earnings per Share" ("APB 15"), with a presentation of basic earnings per 
share and also requires dual presentation of basic and diluted earnings per 
share on the face of the statement of operations for all entities with 
complex capital structures. Basic earnings per share excludes dilution and 
is computed by dividing income available to common shareholders by the 
weighted-average number of common shares outstanding for the period. Diluted 
earnings per share is computed similarly to fully diluted earnings per share
pursuant to APB 15. The Company adopted SFAS 128 in the fourth quarter of 
fiscal 1998 and has restated the prior period in its financial statements.

Basic earnings per share are based on the weighted-average number of shares 
of common stock outstanding, which were 3,407,192 at June 30,1998 and 
3,423,730 at June 30,1997. Diluted earnings per share are based on the 
weighted-average number of shares of common stock adjusted for the effects 
of assumed exercise of options under the treasury stock method, 

                                      LOGITEK,INC.
                                Notes to Financial Statements
Note 1-Description of Business and Summary of Significant Accounting Policies
Net earnings per share-continued

which were as follows:  3,595,166 at June 30,1998 and 3,676,394 at 
June 30,1997. 

The following is a reconciliation of the earnings per share calculations for
the years ended June 30, 1998 and 1997:
                                                  1998                1997
Basic Earning per share computation         
    Numerator                                  $400,790             $324,566
    Denominator:
       Common shares outstanding              3,407,192            3,423,730
    Basic earnings per share                   $  .12                  $ .10

Diluted earnings per share computation
    Numerator                                  $400,790              $324,566
    Denominator:                                                     
       Common shares outstanding              3,407,192             3,423,730
       Options                                  187,974               252,664
       Total shares                           3,595,166             3,676,394
     Diluted earnings per share               $  .11                  $  .09 

Use of Estimates in the Financial Statements

The preparation of financial statements in conformity with generally 
accepted accounting principles requires management to make estimates and 
assumptions that affect the reported amounts of assets and liablilities and 
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the 
reporting period. Actual results could differ from those estimates.

Advertising Costs

Advertising costs are expensed as incurred.

Fair Value of Financial Instruments

The Company's financial instruments include cash, accounts receivable and 
accounts payable.Due to the short-term nature of these instruments, the fair
value of these instruments approximate their recorded value. The Company has 
long term debt which it believes is stated at estimated fair market value.




                               LOGITEK ,INC.
                          Notes to Financial Statements

Note 1-Description of Business and Summary of Significant Accounting Policies 
Stock- Based Compensation

In October 1995, Financial Accounting Standards Board issued Statements of 
Financial Accounting Standards No. 123"Accounting for Stock Based 
Compensation"("SFAS No.123"). SFAS No. 123 requires compensation expense to 
be recorded (i)using the new fair value method or (ii)using existing 
accounting rules prescribed by Accounting Principles Board Opinion No.25,
"Accounting for Stock Issued to Employees"("APB 25") and related 
interpretations with pro forma disclosure of what net income and earnings 
per share would have been had the Company adopted the new fair value method.
The Company intends to continue to account for its stock based compensation 
plans in accordance with the provision of APB 25.Had the Company elected to 
recognize compensation costs based on the fair value of the options at the 
date of grant as prescribed by SFAS No. 123,there would be no material effect
from that recognized under APB 25 for the years ended June 30,1998 and 1997.

Recently Issued Statements of Financial Accounting Standards

In June 1997, the Financial Accounting Standards Board issued two new 
disclosure standards. Statement of Financial Accounting Standards No. 130, 
"Reporting Comprehensive Income"("SFAS 130") establishes standards for 
reporting and display of comprehensive income.

Among other disclosures, SFAS 130 requires that all items that are required 
to be recognized as components of comprehensive income be reported in a 
financial statement that is displayed with the same prominence as other 
financial statements.

Statement of Financial Accounting Standards No. 131, "Disclosures about 
Segments of an Enterprise and Related Information" ("SFAS 131") establishes
standards for the way that public enterprises report information about 
operating segments. SFAS 131 defines operating segments as components of an 
enterprise about which separate financial information is available that is 
evaluated regularly by the chief operating decision maker in deciding how to
allocate resources and in assessing performance. SFAS 131 requires separate
disclosures for different operating segments.

Both of these new standards are effective for financial statements for 
periods beginning after December 15,1997 and require comparative information
for earlier years to be restated. The Company does not expect that adoption 
of these standards will significantly impact its financial statements.

In February 1998, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 132, "Employers' Disclosures about 
Pensions and Other Postretirement Benefits" ("SFAS 132") which standardizes 
the disclosure requirements for pensions and other postretirement benefits. 
The adoption of SFAS 132 is not expected to significantly impact the 
Company's financial statements.



                                 LOGITEK, INC.
                         Notes to Financial Statements

NOTE 2 - Inventories 

Inventories consist of the following:
                                                             June 30,           
                                                      1998           1997 
 Raw materials                                     $547,117        $505,280 
 Work-in-process                                    347,760         326,954 
 Finished goods                                     166,226         213,848 
      Total                                      $1,061,103      $1,046,082 
                                                              
                                                                         
Note 3 - Property, Plant and Equipment 
                                  
Property,plant and equipment consists of the following:

                                                         June 30,              
                                                  1998           1997  
Land                                           $78,000         $78,000  
Buildings and improvements                     802,850         802,850  
Machinery and equipment                      1,243,153       1,150,902   
Furniture and fixtures                         142,876         142,876
Automobiles                                     68,988          68,988
 Total                                       2,335,867       2,243,616
Less: Accumulated Depreciation              (1,655,733)     (1,574,755)
Property Plant and Equipment, Net              680,134         668,861
(a)  Depreciation expense charged to operations was $80,978 and $91,441 for 
     the years ended June 30, 1998 and June 30,1997,respectively.
(b)  The cost of equipment under a capital lease and accumulated depreciation
     on these assets was $122,646 and $25,930,respectively,at June 30,1998, 
    $72,646 and $11,994 respectively at June 30,1997.
                                                     
NOTE 4-Related Party Transactions
                                     
The Company had an uncollateralized loan receivable from its president and 
principal shareholder. The loan balance of $30,500 of June 30,1997 was paid 
in full during June 1998.

NOTE 5-Other Assets
                                                
Included in Other Assets is $39,390 and $36,024 of restricted cash as of 
June 30, 1998 and 1997, respectively, which is held as collateral for the
mortgage payable to Long Island Development Corp. (See Note 7).
                                          
                                                                         
                                             
                               LOGITEK, INC.
                    Notes to Financial Statements 

                                                             
NOTE 6 - Leases 
Capitalized lease obligation

During the years ended June 30,1998 and June 30,1997  the Company obtained 
equipment under  capital leases expiring in February 2003 and March 2002 
respectively. The assets and liabilities under capital leases are recorded 
at the lower of the present values of the minimum lease payments or the fair 
values of the assets. The assets are included in property and equipment and 
are depreciated over their estimated useful lives. As of June 30, 1998,future
minimum lease payments under all capital leases are:
          Year ending                                              Amount
          June 30,   
             1999                                              $   22,123
             2000                                                  25,339
             2001                                                  26,770
             2002                                                  16,751
             2003                                                   6,490  
Total capitalized lease payments                                   97,473
Less: current portion                                              22,123
Total capitalized lease payments,net of current portion          $ 75,350

Operating leases
                                                         
The Company leases certain equipment to support its manufacturing and test 
capabilities and certain office equipment.  Such leases expire through June 
2000.  Rent expense for the years ended June 30, 1998 and 1997 was $5,252 
and $5,252 respectively. Future minimum rental payments under noncancelable 
operating leases as of June 30,1998 are as follows:

                                                                         
                                                                         
                              Year Ending
                              June 30,                           Amount
                                                                   
                              1999                               $5,252
                              2000                                3,532
                              Total                              $8,784
                                                                   
                                                                         
                                                                         
                                                                         
                          LOGITEK,INC.
                    Notes to Financial Statements

NOTE 7 - Long-Term Debt 
Long-term debt consists of the following:
                                                           June 30,      
                                                    1998            1997 
Mortgage payable to NY Job Development
Authority (JDA) in monthly installments
of $2,656 including interest (8.25%  at
June 30, 1998 and 1997) through June 2004,
collateralized by restricted cash, building and                       
improvements with a net book value of
approximately $406,822 (a)                        $135,632      $  154,340 
                                                             
Mortgage payable to Long Island
Development Corp. (LIDC) in monthly
installments of $4,427, including
interest at 14.296% through June 2004,
subordinate to the JDA mortgage,
collateralized by restricted cash, land,
building and improvements with a net 
book value of $406,822  (b)                        208,253          229,340
                                                                  
Notes payable to a bank in monthly 
installments in the aggregate amount of 
$3,125 plus interest at 1.5% above prime
through October 1998, collateralized by
a secondary lien on all assets
of the Company (d)                                     0             44,098
Term loan payable to bank (c)                       47,000          116,000
Total debt                                         390,885          543,778
Less: Current Portion                              (90,525)        (145,182)
Total Long term debt                              $300,360         $398,596
                                                                 
(a) Interest rate varies in response to market conditions. This mortgage is 
guaranteed by the U.S. Small Business Administration. The loan contains 
restrictive convenants including default if the Company defaults on any 
superior debt.
(b) This mortgage is personally guaranteed by the Company's president and 
principal stockholder.The mortgage contains restrictive covenants which 
include, among others,limiting property, plant and equipment additions in 
each year, obtaining written consent of the lender prior to incurring
additional financing obligations and prior to transferring ownership of 
common stock belonging to the Company's president and principal stockholder.
The mortgage is subordinated to the JDA mortgage.                        
(c) The term loan payable to bank requires monthly principal payments of 
$5,750 plus interest at 2% above the bank's prime rate ( 8.25% at June 30, 
1998) through March 1999. 
The note is collateralized by accounts receivable, inventory and certain 
machinery and equipment.
(d) Interest rate varies in response to market conditions.


                            LOGITEK,INC.
                        Notes to Financial Statements

Note 7-Long Term Debt -Continued
Aggregate long-term debt maturities for the five fiscal years subsequent to 
June 30, 1998 are:
                                                                         
                                 Year Ending June 30,            Amount  
                                       1999                     $90,525 
                                       2000                      48,991 
                                       2001                      55,163 
                                       2002                      62,134 
                                       2003                      70,011 
                                      Thereafter                 64,061 
                                       Total                   $390,885 
                                                                
                             
Note 8 - Retirement Plans 
The Company has a defined contribution plan for all eligible employees under 
Internal Revenue Code Section 401(k).  The plan states that the Company will
provide a matching contribution of up to 25% of the first 3% of a 
participant's compensation as well as a discretionary payment.  The Company 
has recorded expense associated with the plan of $41,500 and $30,000 for the 
years ended June 30, 1998 and 1997, respectively.

The Company has an Employee Stock Ownership Plan("ESOP") for the benefit of 
certain employees. As of June 30,1998 all shares in the ESOP have been 
earned and assigned to the respective employee's accounts. There is no 
expense associated with this plan for the years ended June 30, 1998 and 1997.
                                            
Note 9 - Income Taxes 
                                                   
The provision  for income taxes is as follows:
                           
                                               Year Ended June 30, 
                                                 1998       1997
                                                                    
Deferred : Federal                             $21,000     $ 9,000   
         : State                                     0           0            
Current  : Federal                             144,000      65,000    
         : State                                 9,000       1,000
                                              $174,000    $ 75,000

Deferred income taxes result from temporary differences in the recognition 
of expenses for income tax and financial reporting purposes.  Such 
differences result principally from the use for income tax purposes of
accelerated depreciation.    

                                                                         
                          LOGITEK,INC. 
                  Notes to Financial Statements
Note 9-Income Taxes-Continued
                                          
The Company recognizes deferred tax assets or liabilities for the future tax
consequences of events that have been recognized in its financial statements
or tax returns. Accordingly, the Company has recorded a net deferred tax 
liability for the increase in income taxes payable in future years related
to accumulated depreciation and inventory reserve.


The net deferred tax liability in the accompanying balance sheets includes 
the following amounts of deferred tax (assets) liabilities:
                          
                                                1998        1997 
                                                                    
  Federal                                   $ 52,000      $ 15,380  
  New York State                              (7,000)           0     
                                                             
  Net deferred tax liability                $ 45,000      $ 15,380  
                                                              
                                                                         
Income taxes were different from the amount computed by applying the 
federal statutory tax rate to  income before income taxes due to the 
following:
                                              1998              1997
 Statutory rate                               34.0              34.0  
                                        
 State income taxes(net of federal benefit)    1.1               3.0 
 Income tax credits                           (5.8)            (20.5) 
 Net change in items giving rise to 
     deferred taxes                             .7               2.3
 Effective rate                               30.0              18.8

                                          
Note 10 - Stock  Options 

The following options were granted, under a nonqualified stock option plan, 
during the years ended June 30, 1998 and June 30,1997. All options as of 
June 30, 1998 were exercisable for a total exercise price of $236,780.

                                             SHARES              RANGE OF     
                                                             EXERCISE PRICE 
Balance June 30,1996                        396,000               $.25         
    Granted June 30,1997                     10,000               $.50
Balance June 30,1997                        406,000 
    Granted June 30,1998                    225,000               $.70-$.81   
    Expired June 30,1998                   (125,000)              $.25  
Balance June 30,1998                        506,000



                                   LOGITEK, INC.
                            Notes to Financial Statements

Note 10 Stock Options -Continued

The exercise price of the options were set at fair market value on the date
of grant. As of the balance sheet date no options have been exercised. All 
of the options, with the exception of a 250,000 share option held by a major 
shareholder, are exercisable no sooner than over five years, due to an 
annual limit of 20%. These remaining options are held by various employees
and members of the board of directors.  

Note 11 - Major Customers 

During the year ended June 30,1998 the Company sold a substantial portion of 
its merchandise to four customers. Net sales to these customers were 
approximately $1,079,000(22%),$789,000 (16%) $368,000(8%) and 337,000(7%) . 
At June 30,1998 amounts due from these customers and included in accounts 
receivable were $63,825,$129,450, $0 and $20,856,respectively.

During the year ended June 30,1997, the Company sold a substantial portion 
of its merchandise to three customers. Net sales to these customers 
accounted for $575,000 (14%),$868,000 (21%) and $ 933,000 (22%) At June 30,
1997 amounts due from these customers were $37,809,$59,545 and $110,769,
respectively.


Note 12 - Treasury Stock

During the years ended June 30,1998 and 1997 the Company acquired 11,941 and 
29,200 shares of treasury stock for $2,152 and $12,556,respectively. The 
treasury stock was recorded at cost.




Auditors
Marcum & Kliegman LLP
Certified Public Accountants & Consultants
130 Crossways Park Drive
Woodbury , N.Y. 11797


Transfer Agent
Continental Stock Transfer
& Trust Co.
2 Broadway
New York, N.Y. 10004

Form 10-KSB or additional information about the Company
Stockholders and others interested in obtaining additional information about 
the Company may do so by writing or calling Logitek, Inc., 101 Christopher 
Street., Ronkonkoma, N.Y. 11779,(516) 467-4200.  
The Form 10-KSB Annual Report will be furnished without charge.


Affirmative Action Policy
It is the policy of Logitek, Inc. that all employees will be judged on the 
basis of qualifications and ability, without regard to age, sex, race, creed,
color or national origin, in all personnel actions.  No employee or applicant
for employment will receive discriminatory treatment because of physical or 
mental handicap in regard to any position for which the employee or applicant is
qualified.


Annual Stockholders' Meeting
The annual meeting of stockholders will be held at offices of Logitek, Inc.,
101 Christopher Street., Ronkonkoma, N.Y. 11779 on November 23, 1998 at 
6:00 P.M.