-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JrsS+l3Iv7PvhajlXmZrULCJoVe/C9/Ew8N6gpnPkTabGz6EHaHB2fElmFR0HEXx
 poINLKMDNI9Jf/amLAkrfg==

<SEC-DOCUMENT>0001179110-04-011335.txt : 20040524
<SEC-HEADER>0001179110-04-011335.hdr.sgml : 20040524
<ACCEPTANCE-DATETIME>20040524173823
ACCESSION NUMBER:		0001179110-04-011335
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040311
FILED AS OF DATE:		20040524

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			DEVINE JOHN P
		CENTRAL INDEX KEY:			0001258875

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21236
		FILM NUMBER:		04827913

	BUSINESS ADDRESS:	
		STREET 1:		300 W CALIFORNIA AVE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94086
		BUSINESS PHONE:		4086223302

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPLIED SIGNAL TECHNOLOGY INC
		CENTRAL INDEX KEY:			0000741696
		STANDARD INDUSTRIAL CLASSIFICATION:	COMMUNICATIONS EQUIPMENT, NEC [3669]
		IRS NUMBER:				770015491
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1031

	BUSINESS ADDRESS:	
		STREET 1:		400 WEST CALIFORNIA AVENUE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94086
		BUSINESS PHONE:		4087491888

	MAIL ADDRESS:	
		STREET 1:		400 W CALIFORNIA
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94086
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-03-11</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000741696</issuerCik>
        <issuerName>APPLIED SIGNAL TECHNOLOGY INC</issuerName>
        <issuerTradingSymbol>APSG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001258875</rptOwnerCik>
            <rptOwnerName>DEVINE JOHN P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>400 W. CALIFORNIA AVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SUNNYVALE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94086</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option (Right to Buy)</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>26.10</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-03-11</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>7500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-03-11</value>
            </exerciseDate>
            <expirationDate>
                <value>2012-03-11</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>7500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Granted pursuant to the Applied Signal Technology, Inc. 2004 Stock Incentive Plan.  The Option becomes exerciseable in three equal annual installments on May 11, 2005, 2006 and 2007.</footnote>
        <footnote id="F2">Price of Derivative Security: None.  This is a stock option grant. No sale or purchase is taken place on this filing.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>John P. Devine</signatureName>
        <signatureDate>2004-05-24</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----