| x      | Quarterly                  report under Section 13 or 15(d) of the Securities Exchange Act                  of                  1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                 |
|   | For                  the quarterly period ended March                  31, 2007                                                      |
|   |                                                                                                                                 |
| o      | Transition                  report under Section 13 or 15(d) of the Exchange Act                                                     |
|   |                                                                                                                                 |
|   | For the                transition                period from _____________ to                _____________                           |

|   | ISRAEL                  TECHNOLOGY ACQUISITION CORP.                               |   |
|--------|------------------------------------------------------------------------------------|--------|
|   | (Exact                  Name of Small Business Issuer as Specified in Its Charter) |   |

|   | Delaware                                                                                    |   | 20-2374143                                                         |   |
|--------|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|   | (State                or other Jurisdiction ofIncorporation                or Organization) |   | (I.R.S.                Employer Identification                No.) |   |

|   | 7                Gush Etzion, 3rd                Floor, Givaat Shmuel, Israel 54030 |   |
|--------|-------------------------------------------------------------------------------------|--------|
|   | (Address                of Principal Executive Office)                              |   |

|   | (011)                  972-3-532-5918                                   |   |
|--------|-------------------------------------------------------------------------|--------|
|   | (Issuer’s                  Telephone Number, Including Area Code) |   |

----

|                    |                                                                                                   | Page   |
|-------------------------|--------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                   |   |
| Part                I:  | Financial                Information:                                                                  |   |
|                    |                                                                                                   |   |
|                    | Item                1 -Financial Statements (Unaudited):                                               |   |
|                    |                                                                                                   |   |
|                    | Balance                Sheet                                                                           | 3      |
|                    |                                                                                                   |   |
|                    | Statements                of Operations                                                                | 4      |
|                    |                                                                                                   |   |
|                    | Statement                of Stockholders’ Equity                                                 | 5      |
|                    |                                                                                                   |   |
|                    | Statement                of Cash Flows                                                                 | 6      |
|                    |                                                                                                   |   |
|                    | Notes                to Financial Statements                                                           | 7      |
|                    |                                                                                                   |   |
|                    | Item                2 - Management’s Discussion and Analysis or Plan of                Operation | 11     |
|                    |                                                                                                   |   |
|                    | Item                3 - Controls and Procedures                                                        | 13     |
|                    |                                                                                                   |   |
| Part                II. | Other                Information                                                                       |   |
|                    |                                                                                                   |   |
|                    | Item                2 - Unregistered Sales of Equity Securities and Use of                Proceeds     | 14     |
|                    |                                                                                                   |   |
|                    | Item                6 - Exhibits                                                                       | 14     |

|       |   |   |
|------------|--------|--------|
| Signatures |   |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      BALANCE SHEET**

|                                                                                                                                                                                                           |   | **March                31,** |       | **December                31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|---------------------------------|--------|
|                                                                                                                                                                                                           |   | **2007**                     |       | **2006**                        |   |
|                                                                                                                                                                                                           |   | **Unaudited**                |       | **Audited**                     |   |
| **ASSETS**                                                                                                                                                                                                     |   |                         |       |                            |   |   |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| CURRENT                ASSETS                                                                                                                                                                                  |   |                         |       |                            |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                       |   | $                            | 176,746    |                            | $      | 231,531 |   |
| Cash                held in Trust Fund                                                                                                                                                                         |   |                         | 34,965,688 |                            |   | 34,672,835 |   |
| Prepaid                expenses                                                                                                                                                                                |   |                         | 12,500     |                            |   | 25,000 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| Total                current assets                                                                                                                                                                            |   | $                            | 35,154,934 |                            | $      | 34,929,366 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                        |   |                         |       |                            |   |   |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                                                             |   |                         |       |                            |   |   |   |
| Accrued                expenses                                                                                                                                                                                |   | $                            | 230,556    |                            | $      | 191,510 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| Total                liabilities                                                                                                                                                                               |   |                         | 230,556    |                            |   | 191,510 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| Common                  stock , subject to possible conversion, 1,262,968 shares at                  conversion value                                                                                          |   |                         | 6,989,641  |                            |   | 6,931,100 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| STOCKHOLDERS'                EQUITY                                                                                                                                                                            |   |                         |       |                            |   |   |   |
| Share                capital:                                                                                                                                                                                  |   |                         |       |                            |   |   |   |
| Preferred                Stock, $0.0001 par value -                    Authorized: 1,000,000 shares; none issued                                                                           |   |                         |       |                            |   |   |   |
| Common                stock, $0.0001 par value- Authorized                30,000,000 shares, issued and outstanding: 7,818,000 shares (which                includes 1,262,968 subject to possible conversion) |   |                         | 656        |                            |   | 656 |   |
| Additional                paid-in capital                                                                                                                                                                 |   |                         | 27,405,347 |                            |   | 27,405,347 |   |
| Accumulated                earnings during development stage                                                                                                                                                   |   |                         | 528,734    |                            |   | 400,752 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| Total                stockholders' equity                                                                                                                                                                 |   |                         | 27,934,737 |                            |   | 27,806,755 |   |
|                                                                                                                                                                                                           |   |                         |       |                            |   |   |   |
| Total                liabilities and stockholders' equity                                                                                                                                                 |   | $                            | 34,154,934 |                            |   | 34,929,366 |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENERPRISE)**

**STATEMENT      OF OPERATIONS**

|                                                                                                                                                 |   |   **Three                  months ended****March                  31,** |      |   **Three                  months ended****March                  31,** |   |  **For                  the period****February                  22, 2005 (inception) to March 31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                 |   | **2007**                                                                          |      | **2006**                                                                          |   | **2007**                                                                                                 |   |
|                                                                                                                                                 |   | **                       Unaudited**                     |      | **                      Unaudited**                           |   | **                      Unaudited**                                                  |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |
| General                  and administrative expenses                                                                                                 |   | $                                                                                 | 76,355    |                                                                              | $      | 280,700                                                                                                  |   | $ | 903,649 |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Operating                  loss                                                                                                                      |   |                                                                              | (76,335   | )                                                                                 |   | (280,700                                                                                                 | )      |   | (903,649 | ) |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Financial                  income, net                                                                                                               |   |                                                                              | 234,337   |                                                                              |   | 275,442                                                                                                  |   |   | 1,626,545 |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Net                  income ( loss) before income taxes                                                                                              |   |                                                                              | 157,982   |                                                                              |   | (5,258                                                                                                   | )      |   | 722,896 |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Income                  taxes                                                                                                                        |   |                                                                              | (30,000   | )                                                                                 |   | (29,396                                                                                                  | )      |   | (194,162 | ) |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Net                  income (loss)                                                                                                                   |   | $                                                                                 | 127,982   |                                                                              | $      | (34,654                                                                                                  | )      | $ | 528,734 |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Basic                  and diluted net income (loss) per share                                                                                       |   | $                                                                                 | 0.02      |                                                                              | $      | (0.01                                                                                                    | )      |   | 0.1 |   |
|                                                                                                                                                 |   |                                                                              |      |                                                                              |   |                                                                                                     |   |   |   |   |
| Weighted                  average number of common shares used in computing basic and diluted                  net                  income per share |   |                                                                              | 6,555,032 |                                                                              |   | 6,555,032                                                                                                |   |   | 5,377,313 |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**STATEMENT      OF STOCKHOLDERS’ EQUITY**

|                                                                                                                                                                             |   |                              |         |        |   |                   |   | **Accumulated**                 |         |       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------|-------------|--------|------------------------|--------|---------------------------------|--------------|------------|--------|
|                                                                                                                                                                             |   |                              |         |        |   |                   |   | **earnings**                    |         |       |   |
|                                                                                                                                                                             |   |                              |         |        |   | **Additional**         |   | **during                  the** |         | **Total**  |   |
|                                                                                                                                                                             |   | **Common                  Stock** |         | **paid-in** |   | **development**        |   | **stockholders'**               |         |
|                                                                                                                                                                             |   | **Shares                  (1)**   |         | **Amount**  |   | **capital**            |   | **stage**                       |         | **equity** |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |
| Common                  shares issued February 22,2005 at $0.0167                                                                                                                |   |                              | 1,500,000    |        | $      | 150                    |   | $                               | 24,850       |       | $      | - |   | $ | 25,000 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Sale                  of 6,000,000 units , net of underwriters’ discount and offering expenses                  (include 1,199,400 shares subject to possible conversion ) |   |                              | 6,000,000    |        |   | 600                    |   |                            | 32,238,542   |       |   | - |   |   | 32,239,142 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Proceeds                  from issuance of option compensation                                                                                                                   |   |                              | -            |        |   | -                      |   |                            | 100          |       |   | - |   |   | 100 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Allotment                  of 318,000 units , net of underwriters’ discount and offering expenses                                                                          |   |                              | 318,000      |        |   | 32                     |   |                            | 1,719,505    |       |   | - |   |   | 1,719,537 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Proceeds                  subject to possible conversion of 1,262,968 shares                                                                                                     |   |                              | (1,262,968   | )           |   | (126                   | )      |                            | (6,587,650   | )          |   | - |   |   | (6,587,776 | ) |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Net                  income                                                                                                                                                      |   |                              | -            |        |   | -                      |   |                            | -            |       |   | 184,518 |   |   | 184,518 |   |
|                                                                                                                                                                             |   |                              |    |        |   |              |   |                            |    |       |   |    |   |   |    |   |
| Balance                  as of December 31, 2005                                                                                                                                 |   |                              | 6,555,032    |        |   | 656                    |   |                            | 27,395,347   |       |   | 184,518 |   | $ | 27,580,521 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Reimbursement                  of issuance costs                                                                                                                                 |   |                              | -            |        |   | -                      |   |                            | 10,000       |       |   | - |   |   | 10,000 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Net                  income                                                                                                                                                      |   |                              | -            |        |   | -                      |   |                            | -            |       |   | 216,234 |   |   | 216,234 |   |
|                                                                                                                                                                             |   |                              |    |        |   |              |   |                            |    |       |   |    |   |   |    |   |
| Balance                  as of December 31, 2006                                                                                                                                 |   |                              | 6,555,032    |        |   | 656                  $ |   | $                               | 27,405,347   |       | $      | 400,752 |   | $ | 27,806,755 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Net                  income                                                                                                                                                      |   |                              | -            |        |   | -                      |   |                            | -            |       |   | 127,982 |   |   | 127,982 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |
| Balance                  as of March 31, 2007                                                                                                                                    |   |                              | 6,555,032    |        |   | 656                  $ |   | $                               | 27,405,347   |       | $      | 528,734 |   | $ | 27,934,737 |   |
|                                                                                                                                                                             |   |                              |         |        |   |                   |   |                            |         |       |   |   |   |   |   |   |

| (1)   | Share                  amounts have been restated to reflect a stock dividend of one share                  of                  common stock for each outstanding share of common stock affected                  on April                  14, 2005. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                                                     |   | **Three                  months ended****March                  31,** |     | **Three                  months ended****March                  31,** |   | **For                  the period****February                  22, 2005 (inception) to****March                  31,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|----------|-----------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                     |   | **2007**                                                              |     | **2006**                                                              |   | **2007**                                                                                                               |   |
|                                                                                                     |   | **Unaudited**                                                         |     | **Unaudited**                                                         |   | **Unaudited**                                                                                                          |   |
| Cash                  flows from operating activities:                                                   |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Net                  profit ( loss )                                                                     |   | $                                                                     | 127,982  |                                                                  | $      | (34,654                                                                                                                | )      | $ | 528,734 |   |
|                                                                                                     |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Decrease                  ( increase) in other accounts receivable and prepaid                  expenses |   |                                                                  | 12,500   |                                                                  |   | 15,000                                                                                                                 |   |   | (12,500 | ) |
| Increase                  in accrued expenses                                                            |   |                                                                  | 39,046   |                                                                  |   | 20,570                                                                                                                 |   |   | 230,556 |   |
| Accumulated                  interest on cash held in trust                                              |   |                                                                  | (234,313 | )                                                                     |   | (272,188                                                                                                               | )      |   | (1,608,463 | ) |
| Net                  cash used in operating activities                                                   |   |                                                                  | (54,785  | )                                                                     |   | (271,272                                                                                                               | )      |   | (861,673 | ) |
|                                                                                                     |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Cash                  flows from investing activities:                                                   |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Decrease                  long term deposit                                                              |   |                                                                  | -        |                                                                  |   | 500,000                                                                                                                |   |   | - |   |
| Cash                  held in trust fund                                                                 |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | (32,955,360 | ) |
| Net                  cash provided by ( used in ) investing activities                                   |   |                                                                  | -        |                                                                  |   | 500,000                                                                                                                |   |   | (32,955,360 | ) |
|                                                                                                     |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Cash                  flows from financing activities:                                                   |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Gross                  proceeds from issuance of common stock                                            |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 37,908,056 |   |
| Proceeds                  from notes payable, stockholders                                               |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 83,000 |   |
| Payment                  of notes payables, stockholders                                                 |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | (83,000 | ) |
| Proceeds                  from issuance of shares of common stock                                        |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 25,000 |   |
| Proceeds                  from issuance of option                                                        |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 100 |   |
| Reimbursement                  of issuance costs                                                         |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 10,000 |   |
| Payment                  of deferred offering costs                                                      |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | (3,949,377 | ) |
| Net                  cash provided by financing activities                                               |   |                                                                  | -        |                                                                  |   | -                                                                                                                      |   |   | 33,993,779 |   |
|                                                                                                     |   |                                                                  |     |                                                                  |   |                                                                                                                   |   |   |   |   |
| Net                  change in cash and cash equivalents                                                 |   |                                                                  | (54,785  | )                                                                     |   | 228,728                                                                                                                |   |   | 176,746 |   |
| Cash                  and cash equivalents at the beginning of the period                                |   |                                                                  | 231,531  |                                                                  |   | 372,952                                                                                                                |   |   | - |   |
| Cash                  and cash equivalents at the end of the period                                      |   | $                                                                     | 176,746  |                                                                  | $      | 601,680                                                                                                                |   | $ | 176,746 |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**NOTES      TO CONDENSED UNAUDITED FINANCIAL STATEMENTS**

| **1.  ** | **BASIS                    OF                    PRESENTATION** |
|--------------------|-----------------------------------------------------------------|

**Israel      Technology Acquisition Corp.**

| **2.  ** | **ORGANIZATION                AND BUSINESS OPERATIONS** |
|--------------------|---------------------------------------------------------|

----

| **2.  ** | **COMMITMENTS** |
|--------------------|-----------------|

----

| **3.  ** | **NOTES                PAYABLE, STOCKHOLDER** |
|--------------------|-----------------------------------------------|

| **4.  ** | **COMMON                STOCK** |
|--------------------|---------------------------------|

| **5.  ** | **INITIAL                PUBLIC OFFERING** |
|--------------------|--------------------------------------------|

----

**.      **

| **6.  ** | **PROPOSED                    BUSINESS COMBINATION** |
|--------------------|------------------------------------------------------|

----

**ITEM      2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**Forward      Looking Statements**

----

----

**ITEM      3. CONTROLS AND PROCEDURES.**

----

**PART      II.**

**OTHER      INFORMATION**

**ITEM      2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

* *

**ITEM      6: EXHIBITS**

| (a)    | Exhibits:               |                                              |
|--------|-------------------------|---------------------------------------------------|
|   |                    |                                              |
|   | 31.1                  - | Section                  302 Certification by CEO |
|   |                    |                                              |
|   | 31.2                  - | Section                  302 Certification by CFO |
|   |                    |                                              |
|   | 32.1                  - | Section                  906 Certification by CEO |
|   |                    |                                              |
|   | 32.2                  - | Section                  906 Certification by CFO |

----

**SIGNATURES**

|                                  |                                                           |                                 |
|---------------------------------------|----------------------------------------------------------------|--------------------------------------|
|                                  | **ISRAEL              TECHNOLOGY ACQUISITION CORP.**           |
|                             |                                                      |                            |
| Dated: May              15, 2007 | By:                                                  | /s/ Israel              Frieder |
|                                  | Israel              Frieder                                    |
|                                  | Chairman              of the Board and Chief Executive Officer |

|   |                                                 |                               |
|--------|------------------------------------------------------|------------------------------------|
|   | By:                                        | /s/ Glen                Shear |
|   | Glen                Shear                            |
|   | Chief                Financial Officer and Secretary |

----