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**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**(Mark      One)**

|   | **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                ACT OF 1934.** |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------|

**For      the Quarterly Period Ended June 30, 2007.**

**OR**

|   | **o** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                OF 1934** |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from                                    to                                    .**

**Commission      File Number 0-15935**

**ENTERPRISE      INFORMATICS INC.**

| **CALIFORNIA**                                 |   | **95-3634089**                     |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization)  |   | Identification                No.) |

**10052      MESA RIDGE COURT, SUITE 100, SAN DIEGO, CA 92121**

**(858)      625-3000**

| Large                Accelerated Filer o |   | Accelerated                Filer o |   | Non-Accelerated                Filer x |
|-----------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------|

----

|   | **ITEM                1. FINANCIAL STATEMENTS AND SUPPLEMENTARY                DATA** |
|--------|---------------------------------------------------------------------------------------|

|                                                                                                                                                                                                 |   | June                  30, |        |   | September 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|--------------------|--------|
|                                                                                                                                                                                                 |   | 2007                      |        |   | 2006               |   |
|                                                                                                                                                                                                 |   | (Unaudited)               |        |   |               |   |
| **ASSETS**                                                                                                                                                                                           |   |                      |        |   |               |   |
| Current                  assets:                                                                                                                                                                     |   |                      |        |   |               |   |
|      Cash                                                                                                                                                                   |   | $                         | 706,000     |   |               | $      | 95,000 |   |
|      Receivables,                  net                                                                                                                                      |   |                      | 681,000     |   |               |   | 854,000 |   |
|      Other                  current assets                                                                                                                                  |   |                      | 217,000     |   |               |   | 190,000 |   |
|           Total                  current assets                                                                                                    |   |                      | 1,604,000   |   |               |   | 1,139,000 |   |
|                                                                                                                                                                                                 |   |                      |        |   |               |   |   |   |
| Property                  and equipment, net                                                                                                                                                         |   |                      | 143,000     |   |               |   | 131,000 |   |
| Computer                  software, net                                                                                                                                                              |   |                      | 347,000     |   |               |   | 425,000 |   |
| Other                  assets                                                                                                                                                                        |   |                      | 26,000      |   |               |   | 28,000 |   |
|           Total                  assets                                                                                                            |   | $                         | 2,120,000   |   |               | $      | 1,723,000 |   |
|                                                                                                                                                                                                 |   |                      |        |   |               |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ DEFICIT**                                                                                                                                     |   |                      |        |   |               |   |   |   |
| Current                  liabilities:                                                                                                                                                                |   |                      |        |   |               |   |   |   |
|      Accounts                  payable                                                                                                                                      |   | $                         | 440,000     |   |               | $      | 792,000 |   |
|      Payable                  to Spescom Ltd.                                                                                                                               |   |                      | —     |   |               |   | 550,000 |   |
|      Notes                  and accrued interest payable to Spescom Ltd.                                                                                                    |   |                      | 675,000     |   |               |   | — |   |
|      Preferred                  stock dividend payable to Spescom Ltd.                                                                                                      |   |                      | 1,144,000   |   |               |   | 887,000 |   |
|      Accrued                  liabilities                                                                                                                                   |   |                      | 1,348,000   |   |               |   | 1,446,000 |   |
|      Lease                  obligations– current portion                                                                                                              |   |                      | 30,000      |   |               |   | 44,000 |   |
|      Deferred                  revenue                                                                                                                                      |   |                      | 2,622,000   |   |               |   | 2,752,000 |   |
|      Series                  I redeemable preferred stock, par value $0.01 per share; 2,450                  shares                  authorized;                            |   |                      |        |   |               |   |   |   |
|              2,450                  shares issued and outstanding at September 30, 2006                                             |   |                      | —     |   |               |   | 2,450,000 |   |
|           Total                  current liabilities                                                                                               |   |                      | 6,259,000   |   |               |   | 8,921,000 |   |
|                                                                                                                                                                                                 |   |                      |        |   |               |   |   |   |
| Notes                  and accrued interest payable to Spescom Ltd.                                                                                                                                  |   |                      | —     |   |               |   | 664,000 |   |
| Lease                  obligations                                                                                                                                                                   |   |                      | —     |   |               |   | 16,000 |   |
|           Total                  liabilities                                                                                                       |   |                      | 6,259,000   |   |               |   | 9,601,000 |   |
|                                                                                                                                                                                                 |   |                      |        |   |               |   |   |   |
| Shareholders’                  deficit:                                                                                                                                                        |   |                      |        |   |               |   |   |   |
| Convertible                  preferred stock, 243,239 remaining shares authorized                                                                                                                    |   |                      |        |   |               |   |   |   |
|           Series                  F - par value $1.00 per share; 5,291 shares authorized, issued                  and                  outstanding |   |                      |        |   |               |   |   |   |
|              at  June                  30, 2007 and September 30, 2006                                                    |   |                      | 6,790,000   |   |               |   | 6,790,000 |   |
|           Series                  I - par value $0.01 per share; 2,450 shares authorized; 2450                  shares                             |   |                      |        |   |               |   |   |   |
|               issued                  and outstanding at June 30, 2007                                                         |   |                      | 2,450,000   |   |               |   | — |   |
| Common                  stock, no par value, 100,000,000 shares authorized; 37,503,523                  and                  37,144,494 shares                                                       |   |                      | 76,529,000  |   |               |   | 76,581,000 |   |
|            outstanding                  at June 30, 2007 and September 30, 2006                                                               |   |                      |        |   |               |   |   |   |
| Common                  stock warrants                                                                                                                                                               |   |                      | 1,505,000   |   |               |   | 1,505,000 |   |
| Accumulated                  other comprehensive loss                                                                                                                                                |   |                      | (513,000    | )      |               |   | (441,000 | ) |
| Accumulated                  deficit                                                                                                                                                                 |   |                      | (90,900,000 | )      |               |   | (92,313,000 | ) |
|           Total                  shareholders’ deficit                                                                                       |   |                      | (4,139,000  | )      |               |   | (7,878,000 | ) |
|           Total                  liabilities and shareholders’ deficit                                                                       |   | $                         | 2,120,000   |   |               | $      | 1,723,000 |   |
|                                                                                                                                                                                                 |   |                      |        |   |               |   |   |   |

----

|                                                                         |   | For                  the three months ended |       |   | For                  the nine months ended |   |
|------------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------|--------------------------------------------|--------|
|                                                                         |   | June                  30,                   |       |   | June                  30,                  |   |
|                                                                         |   | 2007                                        |       |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                    |   |                                        |       |   |                                       |   |   |   |   |   |   |   |
|      Licenses                                       |   | $                                           | 126,000    |   |                                       | $      | 255,000 |   |   | $ | 2,798,000 |   |   | $ | 1,471,000 |   |
|      Services                  and other            |   |                                        | 1,638,000  |   |                                       |   | 1,278,000 |   |   |   | 4,474,000 |   |   |   | 3,954,000 |   |
| Total                  revenues                                              |   |                                        | 1,764,000  |   |                                       |   | 1,533,000 |   |   |   | 7,272,000 |   |   |   | 5,425,000 |   |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of revenues:                                           |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Licenses                                       |   |                                        | 30,000     |   |                                       |   | 78,000 |   |   |   | 127,000 |   |   |   | 272,000 |   |
|      Services                  and other            |   |                                        | 605,000    |   |                                       |   | 542,000 |   |   |   | 1,869,000 |   |   |   | 1,803,000 |   |
| Total                  cost of revenues                                      |   |                                        | 635,000    |   |                                       |   | 620,000 |   |   |   | 1,996,000 |   |   |   | 2,075,000 |   |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Gross                  profit                                                |   |                                        | 1,129,000  |   |                                       |   | 913,000 |   |   |   | 5,276,000 |   |   |   | 3,350,000 |   |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Research                  and development      |   |                                        | 257,000    |   |                                       |   | 289,000 |   |   |   | 820,000 |   |   |   | 774,000 |   |
|      Marketing                  and sales           |   |                                        | 430,000    |   |                                       |   | 553,000 |   |   |   | 1,471,000 |   |   |   | 1,891,000 |   |
|      General                  and administrative    |   |                                        | 373,000    |   |                                       |   | 441,000 |   |   |   | 1,365,000 |   |   |   | 1,235,000 |   |
| Total                  operating expenses                                    |   |                                        | 1,060,000  |   |                                       |   | 1,283,000 |   |   |   | 3,656,000 |   |   |   | 3,900,000 |   |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                               |   |                                        | 69,000     |   |                                       |   | (370,000 | ) |   |   | 1,620,000 |   |   |   | (550,000 | ) |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  and other income                                   |   |                                        | —    |   |                                       |   | — |   |   |   | — |   |   |   | 4,000 |   |
| Interest                  and other expense                                  |   |                                        | (57,000    | )      |                                       |   | (72,000 | ) |   |   | (182,000 | ) |   |   | (177,000 | ) |
| Net                  income (loss) before income taxes                       |   |                                        | 12,000     |   |                                       |   | (442,000 | ) |   |   | 1,438,000 |   |   |   | (723,000 | ) |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                                  |   |                                        | —    |   |                                       |   | — |   |   |   | (25,000 | ) |   |   | — |   |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                           |   |                                        | 12,000     |   |                                       |   | (442,000 | ) |   |   | 1,413,000 |   |   |   | (723,000 | ) |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Deemed                  preferred dividend                                   |   |                                        | —    |   |                                       |   | — |   |   |   | — |   |   |   | (1,000,000 | ) |
| Net                  income (loss) available after deemed preferred dividend |   |                                        | 12,000     |   |                                       |   | (442,000 | ) |   |   | 1,413,000 |   |   |   | (1,723,000 | ) |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                  preferred dividends                              |   |                                        | (66,000    | )      |                                       |   | (97,000 | ) |   |   | (198,000 | ) |   |   | (283,000 | ) |
| Net                  income (loss) available to common shareholders          |   | $                                           | (54,000    | )      |                                       | $      | (539,000 | ) |   | $ | 1,215,000 |   |   | $ | (2,006,000 | ) |
|                                                                         |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) per share:                                  |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                            |   | $                                           | 0.00       |   |                                       | $      | (0.01 | ) |   | $ | 0.03 |   |   | $ | (0.05 | ) |
|   Diluted                                                          |   | $                                           | 0.00       |   |                                       | $      | (0.01 | ) |   | $ | 0.02 |   |   | $ | (0.05 | ) |
| Weighted                  average shares outstanding:                        |   |                                        |       |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                      |   |                                        | 37,504,000 |   |                                       |   | 36,895,000 |   |   |   | 37,264,000 |   |   |   | 36,869,000 |   |
|    Diluted                                                    |   |                                        | 37,504,000 |   |                                       |   | 36,895,000 |   |   |   | 52,448,000 |   |   |   | 36,869,000 |   |

|                                                                                   |   |   |    |   |   |   |     |   |   |   |      |   |
|----------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|-----------|--------|
| **Statement                  of Comprehensive Income (Loss)**                          |   |   |    |   |   |   |     |   |   |   |
| Net                  income (loss)                                                     |   | $      | 12,000  |   |   | $      | (442,000 | )      |   | $      | 1,413,000 |   |   | $ | (723,000 | ) |
| Other                  Comprehensive income (loss):                                    |   |   |    |   |   |   |     |   |   |   |      |   |   |   |   |   |
|      Foreign                  currency translation adjustment |   |   | (14,000 | )      |   |   | (55,000  | )      |   |   | (72,000   | )      |   |   | (35,000 | ) |
| Comprehensive                  income (loss)                                           |   | $      | (2,000  | )      |   | $      | (497,000 | )      |   | $      | 1,341,000 |   |   | $ | (758,000 | ) |
|                                                                                   |   |   |    |   |   |   |     |   |   |   |      |   |   |   |   |   |

----

|                                                                                                                   |   | For                  the nine months ended |      |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                                                                                                                   |   | June 30,                              |      |
|                                                                                                                   |   | 2007                                       |      |   | 2006 |   |
| Cash                  flows from operating activities:                                                                 |   |                                       |      |   |   |   |
| Net                  income (loss)                                                                                     |   | $                                          | 1,413,000 |   |   | $ | (723,000 | ) |
| Adjustments                  to reconcile net income (loss) to net cash used in operating                  activities: |   |                                       |      |   |   |   |   |   |
|      Depreciation                  and amortization                                           |   |                                       | 130,000   |   |   |   | 118,000 |   |
|      Unpaid                  interest on notes payable                                        |   |                                       | 155,000   |   |   |   | 151,000 |   |
|      Share-based                  compensation                                                |   |                                       | 83,000    |   |   |   | 177,000 |   |
|      Compensation                  for warrants issued to consultants                         |   |                                       | 55,000    |   |   |   | 40,000 |   |
| Changes                  in assets and liabilities:                                                                    |   |                                       |      |   |   |   |   |   |
|      Receivables,                  net                                                        |   |                                       | 183,000   |   |   |   | 186,000 |   |
|      Other                  current assets                                                    |   |                                       | (19,000   | ) |   |   | (114,000 | ) |
|      Accounts                  payable                                                        |   |                                       | (367,000  | ) |   |   | 248,000 |   |
|      Payable                  to Spescom Ltd.                                                 |   |                                       | (569,000  | ) |   |   | (16,000 | ) |
|      Accrued                  liabilities                                                     |   |                                       | (173,000  | ) |   |   | (307,000 | ) |
|      Deferred                  revenue                                                        |   |                                       | (196,000  | ) |   |   | (385,000 | ) |
| Net                  cash provided (used) in operating activities                                                      |   |                                       | 695,000   |   |   |   | (625,000 | ) |
|                                                                                                                   |   |                                       |      |   |   |   |   |   |
| Cash                  flows from investing activities:                                                                 |   |                                       |      |   |   |   |   |   |
| Purchases                  of property and equipment                                                                   |   |                                       | (62,000   | ) |   |   | (42,000 | ) |
| Capitalization                  of development costs                                                                   |   |                                       | —   |   |   |   | (35,000 | ) |
| Net                  cash used in investing activities                                                                 |   |                                       | (62,000   | ) |   |   | (77,000 | ) |
|                                                                                                                   |   |                                       |      |   |   |   |   |   |
| Cash                  flows from financing activities:                                                                 |   |                                       |      |   |   |   |   |   |
| Proceeds                  from exercise of stock options                                                               |   |                                       | 9,000     |   |   |   | — |   |
| Net                  proceeds from private placement                                                                   |   |                                       | —   |   |   |   | 764,000 |   |
| Payments                  on capital lease obligations                                                                 |   |                                       | (30,000   | ) |   |   | (32,000 | ) |
| Net                  cash provided (used) by financing activities                                                      |   |                                       | (21,000   | ) |   |   | 732,000 |   |
|                                                                                                                   |   |                                       |      |   |   |   |   |   |
| Effect                  of exchange rate changes on cash                                                               |   |                                       | (1,000    | ) |   |   | (9,000 | ) |
|                                                                                                                   |   |                                       |      |   |   |   |   |   |
| Net                  increase in cash                                                                                  |   |                                       | 611,000   |   |   |   | 21,000 |   |
| Cash                  at beginning of period                                                                           |   |                                       | 95,000    |   |   |   | 285,000 |   |
|                                                                                                                   |   |                                       |      |   |   |   |   |   |
| Cash                  at end of period                                                                                 |   | $                                          | 706,000   |   |   | $ | 306,000 |   |

----

**NTERPRISE      INFORMATICS INC.**

**CONDENSED      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**  (Unaudited)**

**Note      1 — Basis of Presentation**

**Note      2 — Summary of Significant Accounting Policies**

***Principles      of Consolidation***

***Foreign      Currency***

***Use      of Estimates***

***Revenue      Recognition***

----

| · | The                actual contractual terms, such as payment terms, delivery dates,                and                pricing of the various product and service elements of a                contract |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Availability                of products to be delivered |
|--------|---------------------------------------------------------|

| · | Time                period over which services are to be                performed |
|--------|-----------------------------------------------------------------------------------|

| · | Creditworthiness                of the customer |
|--------|-------------------------------------------------|

| · | The                complexity of customizations to the Company’s software required by service                contracts |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | The                sales channel through which the sale is made (direct, VAR, distributor,                etc.) |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Discounts                given for each element of a                contract |
|--------|------------------------------------------------------------------------------|

| · | Any                commitments made as to installation or implementation of “go live”                dates |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | Acceptance                criteria |
|--------|------------------------------------|

***Fair      Value of Financial Instruments***

***Concentration      of Credit Risk***

***Property      and Equipment***

----

***Software      Development Costs***

***Long-lived      Assets***

***Share-Based      Payments***

|                                     |   | For                  the three months ended |   |   | For                  the nine months ended |   |
|------------------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                     |   | June                  30,                   |   |   | June                  30,                  |   |
|                                     |   | 2007                                        |   |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
| Dividend                  Yield          |   |                                        | 0      | %      |                                       |   | 0 | % |   |   | 0 | % |   |   | 0 | % |
| Expected                  Volatility     |   |                                        | 241    | %      |                                       |   | 171 | % |   |   | 241 | % |   |   | 171 | % |
| Risk                  free interest rate |   |                                        | 5.1    | %      |                                       |   | 5.1 | % |   |   | 5.1 | % |   |   | 5.1 | % |
| Expected                  lives          |   | 10                  yrs                     |   |   | 10                  yrs                    |   |   | 10                  yrs |   |   | 10                  yrs |   |

----

|                                              |   | For                  the three months ended |   |   | For                  the nine months ended |   |
|---------------------------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                              |   | June                  30,                   |   |   | June                  30,                  |   |
|                                              |   | 2007                                        |   |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
|  Research                  and development   |   | $                                           | 1,000  |   |                                       | $      | 4,000 |   |   | $ | 4,000 |   |   | $ | 9,000 |   |
|  Marketing                  and sales        |   |                                        | 5,000  |   |                                       |   | 27,000 |   |   |   | 26,000 |   |   |   | 57,000 |   |
|  General                  and administrative |   |                                        | 10,000 |   |                                       |   | 54,000 |   |   |   | 53,000 |   |   |   | 111,000 |   |
|                                              |   |                                        |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Share-based                  compensation         |   | $                                           | 16,000 |   |                                       | $      | 85,000 |   |   | $ | 83,000 |   |   | $ | 177,000 |   |

|                                                          |   |   |      |   |      |   |    | Weighted-   |   |   |      |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|-----------|--------|---------|-------------|--------|--------|-----------|--------|
|                                                          |   |   |      |   | Weighted- |   |    | Average     |   |   |      |   |
|                                                          |   |   |      |   | Average   |   |    | Remaining   |   |   | Aggregate |   |
|                                                          |   |   |      |   | Exercise  |   |    | Contractual |   |   | Intrinsic |   |
| Options                                                       |   | Shares |      |   | Price     |   |    | Term        |   |   | Value     |   |
|  Outstanding                  Options at October 1, 2006 |   |   | 4,455,000 |   |      | $      | 0.282   |        |   |   |      |   |   |   |
|  Granted                                                 |   |   | —   |   |      |   | — |        |   |   |      |   |   |   |
|  Exercised                                               |   |   | (70,000   | )      |      | $      | 0.133   |        |   |   |      |   |   |   |
|  Forfeited                  or expired                   |   |   | (308,000  | )      |      | $      | 0.418   |        |   |   |      |   |   |   |
|  Outstanding                  at June 30, 2007           |   |   | 4,077,000 |   |      | $      | 0.274   |        |   |   | 6.2       |   |   | $ | 1,600 |   |
|  Exercisable                  at June 30, 2007           |   |   | 3,508,000 |   |      | $      | 0.297   |        |   |   | 5.8       |   |   | $ | 800 |   |
|                                                          |   |   |      |   |      |   |    |        |   |   |      |   |   |   |   |   |

***Income      Taxes***

***Net      Income (Loss) per Common Share***

***Statements      of Cash Flows***

|                                                                                        |   | For                  the nine months ended |    |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                             |   | June                  30,                  |    |
|                                                                                             |   | 2007                                       |    |   | 2006 |   |
| Supplemental                  cash flow information:                                             |   |                                       |    |   |   |   |
|      Interest                  paid                                     |   | $                                          | 102,000 |   |   | $ | 3,000 |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
| Non-cash                  financing and investing activities:                                    |   |                                       |    |   |   |   |   |   |
|      Accrued                  preferred stock dividends                 |   | $                                          | 198,000 |   |   | $ | 283,000 |   |
|      Deemed                  dividend on October 2005 private placement |   |                                       | — |   |   |   | 1,000,000 |   |
|                                                                                             |   | $                                          | 198,000 |   |   | $ | 1,283,000 |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |

----

**Note      3 — Spescom Ltd. Transactions and Related Parties**

|                                                                                         |   | June                  30, |    |   | September 30, |   |
|----------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|--------------------|--------|
| Short-term                  liabilities:                                                     |   | 2007                      |    |   | 2006               |   |
| Payable                  to Spescom Ltd. UK                                                  |   | $                         | -       |   |               | $      | 213,000 |   |
| Notes                  and accrued interest payable to Spescom Ltd. UK                       |   |                      | 675,000 |   |               |   | - |   |
| Payable                  to Spescom Ltd.                                                     |   |                      | -       |   |               |   | 337,000 |   |
|     Payable                  to Spescom Ltd. (including Spescom Ltd. UK) |   | $                         | 675,000 |   |               | $      | 550,000 |   |
|                                                                                         |   |                      |    |   |               |   |   |   |
| Long-term                  liability:                                                        |   |                      |    |   |               |   |   |   |
| Notes                  and accrued interest payable to Spescom Ltd. UK                       |   | $                         | -       |   |               | $      | 664,000 |   |
|                                                                                         |   |                      |    |   |               |   |   |   |

----

**Note      4 — Receivables**

|                                                         |   | June                  30, |    |   | September 30, |   |
|--------------------------------------------------------------|--------|---------------------------|---------|--------|--------------------|--------|
|                                                         |   | 2007                      |    |   | 2006               |   |
| Receivables                  consist of:                     |   |                      |    |   |               |   |
|    Receivables                                |   | $                         | 687,000 |   |               | $      | 767,000 |   |
|    Unbilled                  receivables      |   |                      | 11,000  |   |               |   | 96,000 |   |
|                                                         |   |                      | 698,000 |   |               |   | 863,000 |   |
| Less:                   allowance for doubtful accounts |   |                      | (17,000 | )      |               |   | (9,000 | ) |
|                                                         |   | $                         | 681,000 |   |               | $      | 854,000 |   |
|                                                         |   |                      |    |   |               |   |   |   |

**Note      5 — Reconciliation of Net Income (Loss) and Shares Used in Per Share      Computations:**

|                                                                   |   | For                    the three months ended |       |   | For                    the nine months ended |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------|----------------------------------------------|--------|
|                                                                   |   | June                    30,                   |       |   | June                    30,                  |   |
|                                                                   |   | 2007                                          |       |   | 2006                                         |   |   | 2007 |   |   | 2006 |   |
| Net                    income (loss) available for common shareholders |   | $                                             | (54,000    | )      |                                         | $      | (539,000 | ) |   | $ | 1,215,000 |   |   | $ | (2,006,000 | ) |
|                                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                    (Loss) per share:                          |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                      |   | $                                             | 0.00       |   |                                         | $      | (0.01 | ) |   | $ | 0.03 |   |   | $ | (0.05 | ) |
|   Diluted                                                    |   | $                                             | 0.00       |   |                                         | $      | (0.01 | ) |   | $ | 0.02 |   |   | $ | (0.05 | ) |
|                                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average shares outstanding:                |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                      |   |                                          | 37,504,000 |   |                                         |   | 36,895,000 |   |   |   | 37,264,000 |   |   |   | 36,869,000 |   |
|   Diluted                                                    |   |                                          | 37,504,000 |   |                                         |   | 36,895,000 |   |   |   | 52,448,000 |   |   |   | 36,869,000 |   |

**Note      6 — Segment and Geographic Information**

|                                                             |   | For                  the three months ended |      |   | For                  the nine months ended |   |
|------------------------------------------------------------------|--------|---------------------------------------------|-----------|--------|--------------------------------------------|--------|
|                                                             |   | June                  30,                   |      |   | June                  30,                  |   |
|                                                             |   | 2007                                        |      |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
| United                  States                                   |   | $                                           | 773,000   |   |                                       | $      | 995,000 |   |   | $ | 2,772,000 |   |   | $ | 3,416,000 |   |
| Europe,                  primarily United Kingdom                |   |                                        | 959,000   |   |                                       |   | 410,000 |   |   |   | 4,384,000 |   |   |   | 1,396,000 |   |
| Other                  International                             |   |                                        | 32,000    |   |                                       |   | 128,000 |   |   |   | 116,000 |   |   |   | 613,000 |   |
|                                                             |   | $                                           | 1,764,000 |   |                                       | $      | 1,533,000 |   |   | $ | 7,272,000 |   |   | $ | 5,425,000 |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   | June                  30, |   |   | September                  30, |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   | 2007 |   |   | 2006 |   |
| Identifiable                  assets from continuing operations: |   |                                        |      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| United                  States                                   |   |                                        |      |   |                                       |   |   |   |   | $ | 1,326,000 |   |   | $ | 1,440,000 |   |
| Europe,                  United Kingdom                          |   |                                        |      |   |                                       |   |   |   |   |   | 794,000 |   |   |   | 283,000 |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   | $ | 2,120,000 |   |   | $ | 1,723,000 |   |
|                                                             |   |                                        |      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |

----

**Note 7      — Redeemable and Convertible Preferred Stock**

*October      2005 Private Placement*

*March      2006 Private Placement*

----

*Series F      Convertible 5% Preferred Stock*

**Note 8      — Shareholders’ Deficit**

*Exercise      of Warrants*

*November      2004 Private Placement*

*Issuance      of Warrants to Investor Relations Firm*

----

**Note      9 — Recent Pronouncements**

**Note      10 — Contingencies**

**Note      11 — Subsequent Events**

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**Forward-Looking      Statements**

*This      report contains forward-looking statements within the meaning of      Section 27A of the Securities Act of 1933 and Section 21E of the      Securities Exchange Act of 1934. These forward-looking statements are subject      to      certain risks and uncertainties that could cause actual results to differ      materially from historical results or anticipated results, including those      set      forth under “Certain Factors That May Affect Future Results” below and      elsewhere in, or incorporated by reference into, this report.*

*In      some cases, you can identify forward-looking statements by terms such as “may,”“intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,”“anticipate,” “estimate,” “predict,” “potential,” or the negative of these      terms, and similar expressions are intended to identify forward-looking      statements. When used in the following discussion, the words “believes,”“anticipates” and similar expressions are intended to identify forward-looking      statements. Such statements are subject to certain risks and uncertainties,      which could cause actual results to differ materially from those projected.      Readers are cautioned not to place undue reliance on these forward-looking      statements, which speak only as of the date hereof. The forward-looking      statements in this report are based upon management’s current expectations and      belief, which management believes are reasonable.  These statements      represent our estimates and assumptions only as of the date of this Quarterly      Report on Form 10-Q, and we undertake no obligation to publicly release the      result of any revisions to these forward-looking statements, which may be made      to reflect events or circumstances after the date hereof or to reflect the      occurrence of unanticipated events.*

*The      following discussion should be read in conjunction with the Selected      Consolidated Financial Data and the Consolidated Financial Statements, including      the Notes thereto.*

**OVERVIEW**

* e*
* e*
* e*
* e*
* e*
* e*

----

**CRITICAL      ACCOUNTING POLICIES**

***Revenue      Recognition***

| · | The                actual contractual terms, such as payment terms, delivery dates,                and                pricing of the various product and service elements of a                contract |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Availability                of products to be delivered |
|--------|---------------------------------------------------------|

| · | Time                period over which services are to be                performed |
|--------|-----------------------------------------------------------------------------------|

| · | Creditworthiness                of the customer |
|--------|-------------------------------------------------|

| · | The                complexity of customizations to the Company’s software required by service                contracts |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | The                sales channel through which the sale is made (direct, VAR, distributor,                etc.) |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Discounts                given for each element of a                contract |
|--------|------------------------------------------------------------------------------|

| · | Any                commitments made as to installation or implementation of “go live”                dates |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | Acceptance                criteria |
|--------|------------------------------------|

***Software      Development Costs***

----

***Allowance      for Doubtful Accounts***

***Share-Based      Payments***

**RESULTS      OF OPERATIONS**

|                                                                            |   | For                  the three months ended |    |   | For                  the nine months ended |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------------|---------|--------|--------------------------------------------|--------|
|                                                                            |   | June                  30,                   |    |   | June 30,                              |   |
|                                                                            |   | 2007                                        |    |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
| Revenues:                                                                       |   |                                        |    |   |                                       |   |   |   |   |   |   |   |
|       Licenses                                    |   |                                        | 7       | %      |                                       |   | 17 | % |   |   | 38 | % |   |   | 27 | % |
|       Services                  and other         |   |                                        | 93      | %      |                                       |   | 83 | % |   |   | 62 | % |   |   | 73 | % |
| Total                  revenues                                                 |   |                                        | 100     | %      |                                       |   | 100 | % |   |   | 100 | % |   |   | 100 | % |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of revenues:                                              |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|       Licenses                                    |   |                                        | 2       | %      |                                       |   | 5 | % |   |   | 2 | % |   |   | 5 | % |
|       Services                  and other         |   |                                        | 34      | %      |                                       |   | 35 | % |   |   | 26 | % |   |   | 33 | % |
| Total                  cost of revenues                                         |   |                                        | 36      | %      |                                       |   | 40 | % |   |   | 27 | % |   |   | 38 | % |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Gross                  profit                                                   |   |                                        | 64      | %      |                                       |   | 60 | % |   |   | 73 | % |   |   | 62 | % |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|       Research                  and development   |   |                                        | 15      | %      |                                       |   | 19 | % |   |   | 11 | % |   |   | 14 | % |
|       Marketing                  and sales        |   |                                        | 24      | %      |                                       |   | 36 | % |   |   | 20 | % |   |   | 35 | % |
|       General                  and administrative |   |                                        | 21      | %      |                                       |   | 29 | % |   |   | 19 | % |   |   | 23 | % |
| Total                  operating expenses                                       |   |                                        | 60      | %      |                                       |   | 84 | % |   |   | 50 | % |   |   | 72 | % |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                                  |   |                                        | 4       | %      |                                       |   | (24 | )% |   |   | 22 | % |   |   | (10 | )% |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  and other                                             |   |                                        | (3      | )%     |                                       |   | (5 | )% |   |   | (3 | )% |   |   | (3 | )% |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) before income taxes                          |   |                                        | 1       | %      |                                       |   | (29 | )% |   |   | 19 | % |   |   | (13 | )% |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                                     |   |                                        | — |   |                                       |   | — |   |   |   | — |   |   |   | — |   |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                              |   |                                        | 1       | %      |                                       |   | (29 | )% |   |   | 19 | % |   |   | (13 | )% |
|                                                                            |   |                                        |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Deemed                  dividend                                                |   |                                        | — |   |                                       |   | — |   |   |   | — |   |   |   | (18 | )% |
| Cumulative                  preferred dividends                                 |   |                                        | (4      | )%     |                                       |   | (6 | )% |   |   | (3 | )% |   |   | (5 | )% |
| Net                  income (loss) available to common shareholders             |   |                                        | (3      | )%     |                                       |   | (35 | )% |   |   | 17 | % |   |   | (37 | )% |

----

**Revenues**

*License      Revenues*

|                                          |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|-----------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                          |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                          |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| License                  revenues             |   | $                                           | 126    |   |   | $      | 255    |                                       |   |   | (51    | )%     |   | $ | 2,798 |   |   | $ | 1,471 |   |   |   | 90 | % |
| Percentage                  of total revenues |   |                                        | 7      | %      |   |   | 17     | %                                          |   |   |   |   |   |   | 38 | % |   |   | 27 | % |   |   |   |   |

*Services      and Other Revenues*

|                                          |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|-----------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                          |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                          |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| Services                  and other revenues  |   | $                                           | 1,638  |   |   | $      | 1,278  |                                       |   |   | 28     | %      |   | $ | 4,474 |   |   | $ | 3,954 |   |   |   | 13 | % |
| Percentage                  of total revenues |   |                                        | 93     | %      |   |   | 83     | %                                          |   |   |   |   |   |   | 62 | % |   |   | 73 | % |   |   |   |   |

----

**Cost      of Revenues**

*Cost      of License Revenues*

|                                          |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|-----------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                          |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                          |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| Cost                  of license revenues     |   | $                                           | 30     |   |   | $      | 78     |                                       |   |   | (62    | )%     |   | $ | 127 |   |   | $ | 272 |   |   |   | (53 | )% |
| Percentage                  of total revenues |   |                                        | 2      | %      |   |   | 5      | %                                          |   |   |   |   |   |   | 2 | % |   |   | 5 | % |   |   |   |   |

*Cost      of Services and Other Revenues*

|                                                 |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|------------------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                                 |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                                 |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| Cost                  of services and other revenues |   | $                                           | 605    |   |   | $      | 542    |                                       |   |   | 12     | %      |   | $ | 1,869 |   |   | $ | 1,803 |   |   |   | 4 | % |
| Percentage                  of total revenues        |   |                                        | 34     | %      |   |   | 35     | %                                          |   |   |   |   |   |   | 26 | % |   |   | 33 | % |   |   |   |   |

**Operating      Expenses**

*Research      and Development*

|                                               |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|----------------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                               |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                               |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| Research                  and development expenses |   | $                                           | 257    |   |   | $      | 289    |                                       |   |   | (11    | )%     |   | $ | 820 |   |   | $ | 774 |   |   |   | 6 | % |
| Percentage                  of total revenues      |   |                                        | 15     | %      |   |   | 19     | %                                          |   |   |   |   |   |   | 11 | % |   |   | 14 | % |   |   |   |   |

----

*Marketing      and Sales*

|                                            |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|-------------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                            |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                            |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| Marketing                  & sales expenses |   | $                                           | 430    |   |   | $      | 553    |                                       |   |   | (22    | )%     |   | $ | 1,471 |   |   | $ | 1,891 |   |   |   | (22 | )% |
| Percentage                  of total revenues   |   |                                        | 24     | %      |   |   | 36     | %                                          |   |   |   |   |   |   | 20 | % |   |   | 35 | % |   |   |   |   |

*General      and Administrative*

|                                                 |   | For                  the three months ended |   |   |   |   |   | For                  the nine months ended |   |   |   |   |
|------------------------------------------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                                 |   | June                  30,                   |   |   |   |   |   | June                  30,                  |   |   |   |   |
|                                                 |   | 2007                                        |   |   | 2006   |   |   | Change                                     |   |   | 2007   |   |   | 2006 |   |   | Change |   |
| General                  and administrative expenses |   | $                                           | 373    |   |   | $      | 441    |                                       |   |   | (15    | )%     |   | $ | 1,365 |   |   | $ | 1,235 |   |   |   | 11 | % |
| Percentage                  of total revenues        |   |                                        | 21     | %      |   |   | 29     | %                                          |   |   |   |   |   |   | 19 | % |   |   | 23 | % |   |   |   |   |

**Interest      Expense and Other Expense**

----

**Deemed      Preferred Dividends**

**Cumulative      Preferred Dividends**

----

**LIQUIDITY      AND CAPITAL RESOURCES**

*      e*

*      e*

**Off-Balance      Sheet Arrangements**

**Inflation**

**Contractual      Obligations and Commercial Commitments**

|                                                                   |   | **Amount                  of Commitment Expiring by Period** |      |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------|-----------|
|                                                                   |   | **Total**                                                    |      |   | **Less** |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                                         |      |   | **Than** |   |   | ** ** | **1-3** |   |   | ** ** | **3-5** |   |   | **Over                  5** |   |
|                                                                   |   |                                                         |      |   | **1                  Year** |   |   | **Years** |   |   | **Years** |   |   | **Years** |   |
|                                                                   |   |                                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Notes                  and Accounts Payable to Spescom Ltd. |   | $                                                            | 675,000   |   |   | $ | 675,000 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Lease                  commitments – Operating Leases            |   |                                                         | 1,194,000 |   |   |   | 251,000 |   |   | $ | 518,000 |   |   | $ | 425,000 |   |   |   | — |   |
| Lease                  commitments – Capital Leases              |   |                                                         | 30,000    |   |   |   | 30,000 |   |   |   | - |   |   |   | — |   |   |   | — |   |
| Total                                                                  |   | $                                                            | 1,899,000 |   |   | $ | 956,000 |   |   | $ | 518,000 |   |   | $ | 425,000 |   |   |   | — |   |
|                                                                   |   |                                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**Interest      Rate Risk**

**Foreign      Currency Exchange Risk**

|   | **ITEM                4. CONTROLS AND PROCEDURES** |
|--------|----------------------------------------------------|

**PART      II. OTHER INFORMATION**

|   | **ITEM                  1 — LEGAL PROCEEDINGS** |
|--------|-------------------------------------------------------|

|    | **ITEM                5 — OTHER INFORMATION** |
|--------------|-----------------------------------------------------|

|   | **ITEM                6 — EXHIBITS** |
|--------|-------------------------------------------------|

| 10.1   |   | Second                Addendum to Lease between Enterprise Informatics Inc. and Mesa Ridge                Center, LLC, dated June 14, 2007.                                                                                                                             |   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 31.1   |   | Certification                by the Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)                under                the Securities Exchange Act of 1934 as adopted pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |   |
|   |   |                                                                                                                                                                                                                                                                         |   |
| 31.2   |   | Certification                by the Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)                under                the Securities Exchange Act of 1934 as adopted pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |   |
|   |   |                                                                                                                                                                                                                                                                         |   |
| 32.1   |   | Certification                by the Chief Executive Officer and the Chief Financial Officer Pursuant                to                18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002.                      |   |

----

**SIGNATURES**

| **Signature**                  |   | **Title**                                                   |   | **Date**                                  |
|--------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------|
|                           |   |                                                        |   |                                      |
| /s/                Alan Kiraly |   | Director                and Chief Executive Officer         |   | August                14,  2007 |
| Alan                Kiraly     |   | (Principal                Executive Officer)                |   |                                      |
|                           |   |                                                        |   |                                      |
|                           |   |                                                        |   |                                      |
| /s/                John W. Low |   | Chief                Financial Officer and Secretary        |   | August                14, 2007            |
| John                W. Low     |   | (Principal                Financial and Accounting Officer) |   |                                      |