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

                          FORM 8-K

                       CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the Securities Exchange
                         Act of 1934



Date of Report:           March 23, 2001
                (Date of earliest event reported)



                    Allen Organ Company
   (Exact name of registrant as specified in its charter)



  Pennsylvania             0-275              23-1263194
(State or other         (Commission          (IRS Employer
 jurisdiction           File Number)      Identification No.)
 of incorporation)


150 Locust Street, P.O. Box 36, Macungie, Pennsylvania  18062-0036
 (Address of principal executive offices)               (Zip Code)



                        610-966-2200
       (Registrants telephone number, including area code)

Item 5    Other Events

     Allen Organ Company (NASDAQ-AORGB) Macungie, PA today
announced that it expects sales and operating income in its
first quarter ended March 31, 2001 to be significantly lower
than both the first quarter ended March 31, 2000 and fourth
quarter ended December 31, 2000.  These decreases are due to
lower sales in the Company's Data Communications segment.
     As a result of the current economic downturn, purchases
of data communications equipment has significantly slowed.
Some of the Company's Data Communications products are sold
to carriers including Competitive Local Exchange Carriers
(CLEC).  The financial markets have significantly lowered
the valuations for these types of companies, some of which
require continued funding to build out their networks
(purchase equipment) and deliver services.  The Company has
experienced delays in completing sales to this sector
because of such funding difficulties.  Future sales to some
of these customers may be negatively affected by their
ability to raise capital.
     Due to the economic problems discussed above, the
Company's Data Communications segment expects lower sales in
both the first quarter and year ended December 31, 2001.  As
a result of this decrease in sales the Company estimates
that this segment will incur an operating loss in excess of
$3,000,000 in the first quarter ended March 31, 2001.  The
Company has developed plans to reduce operating expenditures
to improve future operating results.
     The Data Communications segment operates through two
business units and accounted for $33,321,342 and $23,295,979
of the Company's 2000 and 1999 revenue, respectively.  This
segment incurred a loss from operations of $2,063,221 and
$805,738 for 2000 and 1999, respectively.
     Allen Organ Company operates in four industry segments:
Musical Instruments, Data Communications, Electronic
Assemblies and Audio Equipment.  The Company's consolidated
revenue was $72,516,208 and $58,018,742 for 2000 and 1999
respectively.  Consolidated income from operations was
$3,822,070 for 2000, as compared to $1,812,856 in 1999.
Currently, the Company's other operating segments have not
been significantly affected by the slower economic
environment.



                         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 hereunto duly
authorized.
                                     ALLEN ORGAN COMPANY

Date:      March 23, 2001            /s/ STEVEN MARKOWITZ
                                   Steven Markowitz, President