UNITED STATES

                SECURITIES AND EXCHANGE COMMISSION

                       Washington, D.C. 20549             

                             FORM 10-Q

Quarterly Report Pursuant to Section 13 OR 15(d) of the Securities Exchange
Act of 1934.

For the quarterly period ended                 June 30,December 31, 1997 

Commission file number                         0-10976 


                    MICROWAVE FILTER COMPANY, INC.
        (Exact name of registrant as specified in its charter.)       

          New York                          16-0928443
  (State of Incorporation)         (I.R.S. Employer Identification
                                              Number)

6743 Kinne Street, East Syracuse, N.Y.           13057   
(Address of Principal Executive Offices)       (Zip Code)

Registrant's telephone number, including area code:  (315) 438-4700

   Indicate by check mark whether 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 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 (   )


   Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:

   Common Stock, $.10 Par Value -    3,545,1083,545,057 shares as of June
30, 1997December
31, 1997.



                     PART I. - FINANCIAL INFORMATION


                     MICROWAVE FILTER COMPANY, INC.
                     
                  CONSOLIDATED BALANCE SHEETSSTATEMENTS OF OPERATIONS

                          FOR THE THREE MONTHS 

                    ENDED DECEMBER 31, 1997 AND 1996
                              (Unaudited)


(Amounts in thousands)   
                               JUNE 30,thousands, except per share data)

                                Three months ended        
                                     Dec. 31                    
                                1997          1996         
[S]                            [C]           [C]            
Net sales                      $1,840        $1,722          

Cost of goods sold              1,126         1,095         
                               -------       -------      
Gross profit                      714           627       

Selling, general and
 administrative expenses          659           586          
                               -------       -------      
Income from operations             55            41

Other income (expense)             16            16          
                               -------       -------       
Income before income
 taxes                             71            57          

Provision for income
 taxes                             24            20          
                               -------       -------      
NET INCOME                        $47           $37           
                               =======       =======      

Earnings per share              $0.01         $0.01       
                               =======       =======      

[FN]
See Accompanying Notes to Consolidated Financial Statements 


  
                         MICROWAVE FILTER COMPANY, INC.

                          CONSOLIDATED BALANCE SHEETS
                              

                               DECEMBER 31, 1997       SEPTEMBER 30, 19961997
                                   (Unaudited)
[S]                                 [C]                    [C]         
Assets
Current Assets:
Cash and cash equivalents           $ 9811,158                $ 1,2811,434
Accounts receivable-trade,net           542                    724 
Federal and state income761                    545 
Inventories                           1,321                  1,262
Deferred tax receivable                              11asset - Inventories                           1,289                  1,499current            259                    259
Prepaid expenses and other 
 current assets                         345                    323100                    104 
                                    --------               --------
Total current assets                  3,168                  3,8273,599                  3,604

Property,plant and equipment,net      1,566                  1,5831,611                  1,562

Deferred Tax asset - noncurrent           8                      8

                                    --------               --------
Total assets                        $ 4,7345,218                $ 5,4105,174    
                                    ========               ========
 
Liabilities And Stockholders' Equity
Current liabilities:
Current portion of long term 
 debt                               $    5556                $    5356  
Accounts payable                        217                    300335                    320
Customer deposits                        64                    19957                     50   
Accrued federal and state 
 income taxes                            -                    28948                     30    
Accrued payroll and related 
 expenses                                116                    12770                    103  
Accrued compensated absences            189                    198231                    222
Other current liabilities               61                     81252                     78
                                    --------               --------
Total current liabilities             702                  1,247
                                    --------               --------1,050                    859
                         
Long term debt, less current
 portion                                 78                    10331                     46
Deferred compensation and
 other liabilities                       60                     8217                     18
                                    --------               --------
Total liabilities                     840                  1,4321,098                    923
                                    --------               --------
Stockholders' Equity:
Common stock,$.10 par value             428                    426428
Additional paid-in capital            3,206                  3,1933,206 
Retained earnings                     897                    9971,124                  1,255  
                                    --------               --------
                                      4,531                  4,6164,758                  4,889
Common stock in treasury,
 at cost                               (638)                  (638)
                                    --------               --------
Total stockholders' equity            3,894                  3,9784,120                  4,251
                                    --------               --------
Total liabilities and
 stockholders' equity               $ 4,7345,218                $ 5,4105,174
                                    ========               ========

[FN]
See Accompanying Notes to Consolidated Financial Statements

                              
                     MICROWAVE FILTER COMPANY, INC.
                     
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                  FOR THE THREE MONTHS AND NINE MONTHS

                      ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)


(Amounts in thousands, except per share data)


                                Three months ended         Nine months ended
                                     June 30                    June 30
                                1997          1996         1997         1996

[S]                            [C]           [C]          [C]          [C]     
Net sales                      $1,669        $1,877       $4,598       $5,829   

Cost of goods sold                911         1,171        2,736        3,591
                               -------       -------      -------      -------
Gross profit                      758           706        1,862        2,238

Selling, general and
 administrative expenses          669           613        1,810        1,884  
                               -------       -------      -------      -------
Income from 
 operations                        89            93           52          354

Other income                       24             9           66           13
                               -------       -------      -------      ------- 
Income before
 income taxes                     113           102          119          367 

Provision for
 income taxes                      39            35           41          127
                               -------       -------      -------      -------

NET INCOME                        $74           $67          $78         $240
                               =======       =======      =======      =======

Earnings per share              $0.02         $0.02        $0.02        $0.07
                               =======       =======      =======      =======

[FN]
See Accompanying Notes to Consolidated Financial Statements



                          MICROWAVE FILTER COMPANY, INC. 

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                           FOR THE THREE MONTHS AND NINE MONTHS ENDED

                           JUNE 30,DECEMBER 31, 1997 AND 1996
                                 (Unaudited)

                                (Amounts in thousands)

                                Three months ended        
                                  Nine months ended
                                     June 30                  June 30December 31                  
                                1997          1996        
1997         1996
[S]                          [C]            [C]                          [C]            [C]           
Cash flows from operating                                                  
 activities:

Net income                   $   7447        $    67      $   78        $  24037     
Adjustments to reconcile
 net income to net cash
 provided by operating
 activities:
Depreciation and amortization    79             84         235           25177             78        
Stock compensation                0              6          15            518

Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable            (124)            59         182           233(216)           105         
Inventories                     52            225         210           649(59)           198      
Prepaid expenses & other
 assets                           51             62         (22)            14            (25)           
Increase (decrease) in:
Accounts payable & accrued
 expenses                        (63)            25        (559)         (107)13           (414)        
Deferred compensation &
 other liabilities               (1)             (1)         (4)           (4)
                             -------        -------4        
                             -------        -------    
Net cash provided by (used in)
 operating activities          68            527         135         1,314
                             -------        -------     -------       -------(135)            (9)          
                                
Cash flows from investing activities:
Capital expenditures           (29)           (86)       (217)         (138)(127)           (72)      

Cash flows from financing activities:
Principal payments on 
 long-term debt                 (14)           (248)        (40)         (320)
Purchase of treasury 
 stock                            -              -           -            (1) 
Cash dividend paid                -              -        (178)         (168)(13)       
                             -------        -------     -------       -------
Net cash used in 
 financing activities           (14)          (248)       (218)         (489)     
Increase (decrease) in cash
 and cash equivalents          25            193        (300)          687(276)           (94)         
Cash and cash equivalents
 at beginning of period       956          1,0151,434           1,281           521 
                             -------        -------         
                             -------        -------       
Cash and cash equivalents 
 at end of period            $  981         $1,208      $  981        $1,208
                             =======        =======$1,158          $1,187      
                             =======        =======      

[FN]

See Accompanying Notes to Consolidated Financial Statements


                    MICROWAVE FILTER COMPANY, INC.
 
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   

                         JUNE 30,DECEMBER 31, 1997


Note 1. Summary of Significant Accounting Policies

  The accompanying financial statements, which should be read in conjunction
with the financial statements of Microwave Filter Company, Inc. ("the 
Company") included in the 19961997 Annual Report filed on Form 10-K, are 
unaudited but have been prepared in the ordinary course of business for
the purpose of providing information with respect to the interim period.
The Company believes that all adjustments (none of which were other than
normal recurring accruals) necessary for a fair presentation for such
periods have been included.

Note 2. Earnings (loss) per share

  Earnings (loss) per common share are calculated based upon the weighted 
average number of shares of common stock outstanding during the periods 
including, when significant, any common stock equivalents and after 
restatement of any stock dividends. The weighted average number of shares
of common stock outstanding used for the computations were 3,549,301 for 
the nine months3,545,057 and 3,545,1153,547,398 for the three months 
ending June 30,December 31, 1997 and 3,520,194 for the nine months and 3,535,786 for the three months ending 
June 30, 1996.December 31, 1996, respectively.

Note 3. Inventories

  Inventories are stated at the lower of cost determined on the first-in,
first-out method or market. 
  
  Inventories consisted of the following:
                                           June 30,December 31,     September 30,
                                               1997             19961997

  Raw materials and stock parts              $   825872          $   958832
  Work-in-process                                258              299198              185
  Finished goods                                 206              242251              245
                                             -------          -------    
                                             $ 1,2891,321          $ 1,4991,262
                                             =======          =======


           

                    MICROWAVE FILTER COMPANY, INC.
           
                     MANAGEMENT'S DISCUSSION AND 
                 ANALYSIS OF FINANCIAL CONDITION AND
                        RESULTS OF OPERATIONS

                          JUNE 30,DECEMBER 31, 1997

  Net sales for the nine months ended June 30, 1997 equalled $4,598,447, a 
decrease of $1,230,862 or 21.1% when compared to net sales of $5,829,309 
for the nine months ended June 30, 1996.


  Net sales for the three months ended June 30,December 31, 1997 equalled $1,668,994, a decrease$1,839,943,
an increase of $207,812$117,521 or 11.1%6.8% when compared to net sales of $1,876,806$1,722,422 for
the three months ended June 30,December 31, 1996. 

  The decreasesincrease in net sales can primarily be attributed to an increase in the 
sales of the Company's RF/Microwave products to OEMs (Original Equipment 
Manufacturers.) Part of the Company's long term growth strategy (see the 
FY96 annual report) is to invest in product and infrastructure development
to exploit new markets such as LMDS (Cellular TV), PCS and PCN; and, continue
to develop OEM relationships. This strategy is proving successful and has
helped offset the hiatus in demand in Wireless Cable; as well as a slowdowndecrease
in sales in the Company's two largest market segments, Cable Television and Wireless Cable.
The Company continues to experienceSchroeder Machines Division of Niagara Scientific, Inc., a
slowdown in the demand for hardware 
in both the Cable Television and Wireless Cable markets primarily due to 
competition from Direct Broadcast Satellite and the lack of readily available
competitively priced digital compression technology in the Wireless Cable
and Wireline Cable marketplace.

  Gross profit for the nine months ended June 30, 1997 equalled $1,862,058
or 40.5% of sales compared to $2,238,166 or 38.4% of sales for the nine 
months ended June 30, 1996. Gross profitwholly owned subsidiary. 
 
  Net income for the three months ended June
30,December 31, 1997 equalled $758,221$46,724,
an increase of $9,313 or 45.4% of sales24.9% when compared to $705,860 or 37.6%net income of sales during$37,411 for 
the three months ended June 30,December 31, 1996. The dollar decreasesincrease in gross profitnet income can 
primarily be attributed to the decreasesincrease in sales. The 
increasessales and the improvement in gross
profit as a percentage of sales when compared to the same periodsperiod last year, can primarily be attributedyear.

  Gross profit increased $87,221 or 13.9% to product sales mix,
improvements in productivity and planned reductions in manufacturing costs.

  Selling, general and administrative (SG&A) expenses for the nine months
ended June 30, 1997 equalled $1,809,918, a decrease of $74,152 or 3.9% when
compared to SG&A expenses of $1,884,070 for the nine months ended June 30, 
1996. SG&A expenses for the three months ended June 30, 1997 equalled 
$669,284, an increase of $56,470 or 9.2% when compared to SG&A expenses of 
$612,814 for the three months ended June 30, 1996. The increase in SG&A 
expenses$713,958 during the three 
months ended June 30,December 31, 1997 when compared to gross profit of $626,737 
during the three months ended December 31, 1996. The dollar increase in gross 
profit during the three months ended December 31, 1997 can be attributed
equally to the increase in sales and the improvement in gross profit as a 
percentage of sales when compared to the same period last year. The increase
in gross profit as a percentage of sales during the three months ended 
December 31, 1997 when compared to the same period last year is due primarily to an increase in advertising and 
promotional expenses. The Company's primary objective continues to be
the development of new products and the development of new markets, such
as LMDS and PCS.  

  Other income for the nine months ended June 30, 1997 equalled $66,461,
an increase of $53,594 when compared to other income of $12,867 for the
nine months ended June 30, 1996. The increase can primarily 
be attributed to an increase in interest incomelower manufacturing overhead cost per sales dollar. 
     
   Selling, general and a decrease in interest expenseadministrative (SG&A) expenses increased $72,948 
to $659,203 during the three months ended December 31, 1997 when compared 
to SG&A expenses of $586,255 during the same period last year.three months ended December 31,
1996. Increases were realized in advertising and promotional expenses, sales 
commissions, salary and salary related expenses.  

  Cash and cash equivalents decreased $299,669$276,042 to $981,330$1,158,431 at June 30,December 31, 
1997 when compared to $1,280,999 at September 30, 1996.1997. The decrease was a result of 
$135,176$135,308 in net cash provided byused in operating activities, $217,172$126,829 in net cash 
used for capital expenditures and $217,673$13,905 in net cash used in financing 
activities. 

  At June 30,December 31, 1997, the Company had available aggregate lines of credit
totaling $600,000. Of these lines, $100,000 is for the purchase of equipment and is
collateralized by equipment and $500,000 is for working capital and is
collateralized by accounts receivable, inventories and equipment. 
In addition, the Company has a letterLetter of creditCredit facility
available, for up to $500,000, which is collateralizedwill be secured by specificspecified inventory
to bebeing purchased.  

  Management believes that its working capital requirements for the forseeable
future will be met by its existing cash balances, future cash flows and its
current credit arrangements.  

 
  



SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995

  Any statements contained in this report which are not historical facts are
forward looking statements; and, therefore, many important factors could 
cause actual results to differ materially from those in the forward looking
statements. Such factors include, but are not limited to, changes 
(legislative, regulatory and otherwise) in the MMDS, LPTV or Cable industry,
demand for the Company's products (both domestically and internationally),
the development of competitive products, competitive pricing, market 
acceptance of new product introductions, technological changes, general
economic conditions, litigation and other factors, risks and uncertainties
which may be identified in the Company's Securities and Exchange Commission
filings.


                     PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         The Company is unaware of any material threatened or pending
         litigation against the Company.company. 

Item 2.  Changes in Securities

         None during this reporting period. 

Item 3.  Defaults Upon Senior Securities

         The Company has no senior securities.

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

         None during this reporting period. 

Item 6.  Exhibits and Reports on Form 8-K

         None during this reporting period.None.






    Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized. 

                               MICROWAVE FILTER COMPANY, INC.


AugustFebruary 13, 19971998                  Carl F. Fahrenkrug 
(Date)                           --------------------------
                                 Carl F. Fahrenkrug
                                 Chief Executive Officer

AugustFebruary 13, 19971998                  Richard L. Jones
(Date)                           --------------------------
                                 Richard L. Jones
                                 Chief Financial Officer