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 quarter ended June 30, 2005.

OR

[ ] 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  0-14870
                        -------

                                   QUIPP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Florida                                                59-2306191
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                  4800 N.W. 157th Street, Miami, Florida 33014
                  --------------------------------------------
                    (Address of principal executive offices)

Registrant's telephone number, including area code (305) 623-8700
                                                   --------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [X]     No [ ]

Indicate by check whether the registrant is an accelerated filer (as defined in
Rule 12b-2 of the Exchange Act).

Yes [ ]     No [X]

The number of shares of the registrant's common stock, $.01 par value,
outstanding at August 4, 2005 was 1,423,775.

<PAGE>
                                   QUIPP, INC.
                                      INDEX

<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION                                                          PAGE
                                                                                        ----
<S>                                                                                     <C>
         Item 1 - Unaudited Condensed Consolidated Financial Statements

                  Unaudited Condensed Consolidated Balance Sheets -                       3
                    June 30, 2005 and December 31, 2004

                  Unaudited Condensed Consolidated Statements of Operations -             4
                    Three and six months ended June 30, 2005 and 2004

                  Unaudited Condensed Consolidated Statements of Cash Flows -             5
                    Six months ended June 30, 2005 and 2004

                  Notes to Unaudited Condensed Consolidated Financial Statements          6

         Item 2 - Management's Discussion and Analysis of                                 9
                    Financial Condition and Results of Operations

         Item 3 - Quantitative and Qualitative Disclosure about Market Risk              11

         Item 4 - Controls and Procedures                                                11


PART II - OTHER INFORMATION

         Item 4 - Submission of Matters to a Vote of Security Holders                    12

         Item 6 - Exhibits and Reports on Form 8-K                                       13
</TABLE>

                                       2
<PAGE>

PART 1 - FINANCIAL INFORMATION
ITEM 1   UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                           QUIPP, INC. AND SUBSIDIARY
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                    JUNE 30, 2005      DECEMBER 31, 2004
                                                                    -------------      -----------------
<S>                                                                 <C>                  <C>
ASSETS

Current assets:
Cash and cash equivalents                                           $  1,602,916         $  5,762,511
Securities available for sale                                          7,798,401            2,976,696
Accounts receivable, net                                               1,964,716            4,092,548
Inventories                                                            2,899,110            4,876,677
Deferred tax asset-current                                               531,589              531,589
Prepaid expenses and other receivables                                   361,918              200,570
                                                                    ------------         ------------

TOTAL CURRENT ASSETS                                                $ 15,158,650         $ 18,440,591

Property, plant and equipment, net                                     1,634,156            1,693,504
Goodwill and Intangible assets, net                                      668,976              726,574
Other assets                                                              37,098               40,458
                                                                    ------------         ------------
TOTAL ASSETS                                                        $ 17,498,880         $ 20,901,127
                                                                    ============         ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Current portion of long-term debt                                 $    100,000         $    100,000
  Accounts payable                                                     1,041,390            1,260,650
  Accrued salaries and wages                                             609,448              603,617
  Deferred revenues                                                    1,500,527            4,633,632
  Other accrued liabilities                                            1,654,613            2,024,889
                                                                    ------------         ------------

TOTAL CURRENT LIABILITIES                                              4,905,978            8,622,788

Long-term debt, net of current portion                                   350,000              350,000
                                                                    ------------         ------------

TOTAL LIABILITIES                                                      5,255,978            8,972,788

Shareholders' equity:
  Common stock - (par value $.01 per share, authorized
    8,000,000 shares, issued 1,433,025 in 2004 and 2003)                  14,330               14,330
  Additional paid-in capital                                             101,020               83,825
  Treasury stock, at cost (9,250 shares in 2004 and 2003)               (148,375)            (148,375)
  Retained earnings                                                   12,279,481           11,994,935
  Other comprehensive income                                              (3,554)             (16,376)
                                                                    ------------         ------------
                                                                      12,242,902           11,928,339
                                                                    ------------         ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $ 17,498,880         $ 20,901,127
                                                                    ============         ============
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements

                                       3
<PAGE>
                            QUIPP INC. AND SUBSIDIARY
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                            FOR THE THREE MONTHS ENDED                 FOR THE SIX MONTHS ENDED
                                                        ---------------------------------         ---------------------------------
                                                        JUNE 30, 2005        JUNE 30, 2004        JUNE 30, 2005        JUNE 30, 2004
                                                        -------------        -------------        -------------        -------------
<S>                                                     <C>                  <C>                  <C>                  <C>
Net sales                                               $  5,440,575         $  7,296,461         $ 13,715,339         $ 13,085,834
Cost of sales                                             (3,811,717)          (5,434,042)         (10,179,554)          (9,653,281)
                                                        ------------         ------------         ------------         ------------

GROSS PROFIT                                               1,628,858            1,862,419            3,535,785            3,432,553
                                                        ------------         ------------         ------------         ------------
Operating expenses:
   Selling, general and  administrative expenses          (1,312,031)          (1,577,984)          (2,983,627)          (2,903,829)
   Research and development                                 (133,711)            (230,719)            (192,810)            (347,297)
                                                        ------------         ------------         ------------         ------------

OPERATING  PROFIT                                            183,116               53,716              359,348              181,427

Other income (expense):
   Miscellaneous income                                       25,000               80,000               25,000               80,000
   Interest income                                            54,517              108,037               94,718              128,036
   Interest expense                                           (2,719)              (1,672)              (4,834)              (3,288)
                                                        ------------         ------------         ------------         ------------
                                                              76,798              186,365              114,884              204,748

INCOME BEFORE INCOME TAXES                                   259,914              240,081              474,232              386,175

Income tax expense                                          (103,958)             (90,576)            (189,686)            (145,361)
                                                        ------------         ------------         ------------         ------------

NET  INCOME                                             $    155,956         $    149,505         $    284,546         $    240,814
                                                        ============         ============         ============         ============

PER SHARE AMOUNTS:

  Basic income per common share                         $       0.11         $       0.11         $       0.20         $       0.17
  Diluted  income per common share                      $       0.11         $       0.10         $       0.20         $       0.17

  Basic average number of common and
    common equivalent shares outstanding                   1,423,775            1,423,775            1,423,775            1,423,775
  Diluted average number of common and
    common equivalent shares outstanding                   1,423,775            1,428,060            1,423,775            1,427,076
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       4
<PAGE>
                            QUIPP INC. AND SUBSIDIARY
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                       FOR THE SIX MONTHS ENDED
                                                                                  ---------------------------------
                                                                                  JUNE 30, 2005       JUNE 30, 2004
                                                                                  -------------       -------------
<S>                                                                                <C>                 <C>
Cash provided by operations:
   Net income                                                                      $   284,546         $   240,814

Reconciliation of net income to net cash
provided by operations:
   Depreciation                                                                        118,947             136,226
   Intangible amortization and goodwill impairment                                      57,598              75,290
   Stock-based compensation                                                             17,195               2,412

Changes in operational assets and liabilities net of effect of acquisition:
   Accounts and notes receivable                                                     2,127,832          (1,673,893)
   Inventories                                                                       1,977,567          (1,926,717)
   Prepaid and other assets                                                           (157,988)            100,710
   Notes Receivable                                                                         --             154,565
   Accounts payable and  other accrued liabilities                                    (583,705)            985,886
   Deferred revenues                                                                (3,133,105)             37,325
                                                                                   -----------         -----------
   NET CASH  PROVIDED BY (USED IN) OPERATIONS                                          708,887          (1,867,382)
                                                                                   -----------         -----------

Cash flow from investing activities:
   Securities purchased                                                             (6,112,130)         (4,491,969)
   Securities sold                                                                   1,303,247             390,000
   Capital expenditures                                                                (59,599)           (130,307)
                                                                                   -----------         -----------
NET CASH USED IN INVESTING ACTIVITIES                                               (4,868,482)         (4,232,276)
                                                                                   -----------         -----------

Decrease in cash and cash equivalents                                               (4,159,595)         (6,099,658)

Cash and cash equivalents at beginning of year                                       5,762,511           7,490,814
                                                                                   -----------         -----------

Cash and cash equivalents at end of quarter                                        $ 1,602,916         $ 1,391,156
                                                                                   ===========         ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION:
Unrealized gain (loss) on securities available for sale, net of taxes              $    12,822         $   (18,319)

SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS:
   Interest                                                                        $     4,834         $     3,288
                                                                                   ===========         ===========
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       5
<PAGE>
                           QUIPP, INC. AND SUBSIDIARY
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include
the accounts of Quipp, Inc. and its wholly owned subsidiary, Quipp Systems, Inc.
All significant intercompany transactions have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements have been
prepared on a basis consistent with that used as of and for the year ended
December 31, 2004 and, in the opinion of management, reflect all adjustments
(principally consisting of normal recurring accruals) considered necessary to
present fairly the financial position of Quipp, Inc. and subsidiary as of June
30, 2005 and the results of its operations and cash flows for the six months
ended June 30, 2005. The results of operations for the six months ended June 30,
2005 are not necessarily indicative of the results to be expected for the full
year ending December 31, 2005. These financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and the instructions of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles in the United States of America for complete financial
statements. The unaudited condensed consolidated balance sheet at December 31,
2004 was derived from audited financial statements, but is not accompanied by
all disclosures required by generally accepted accounting principles.

NOTE 2 - INVENTORIES

Inventories include material, labor and factory overhead and are stated at the
lower of cost or market. Inventory also includes equipment requiring complex
installation services that has been shipped to customers but for which the sale
has not been recognized. Cost is determined using the first-in, first-out (FIFO)
method. The composition of inventories at June 30, 2005 and December 31, 2004 is
as follows:

                                       JUNE 30, 2005   DECEMBER 31, 2004
                                       -------------   -----------------
         Raw materials                  $1,961,634        $1,844,297
         Work in process                   497,999         1,024,104
         Finished goods                    111,990           162,497
                                        ----------        ----------
         Subtotal                        2,571,623         3,030,898
         Shipped, not recognized           327,487         1,845,779
                                        ----------        ----------
                                        $2,899,110        $4,876,677
                                        ----------        ----------

NOTE 3- REVENUE RECOGNITION

Revenue is recognized when all significant contractual obligations have been
satisfied and collection of the resulting accounts receivable is reasonably
assured. Revenue from the sale of standard stand-alone equipment without
installation service is recognized upon delivery according to contractual terms
and is recorded net of discounts. Revenue from multiple-element arrangements
such as the sale of standard equipment and basic installation services is
recognized in accordance with EITF 00-21 "Revenue Arrangements with Multiple
Deliverables." Revenue from the standard equipment is recognized upon delivery
according to contractual terms and is recorded net of discounts. The fair value
of the revenue related to the installation service is deferred until
installation services are provided. Fair value is determined by the price
charged to other customers when services are sold separately and is supported by
competitive market data. Revenue from long-term complex equipment or
installation arrangements is recognized using the unit of delivery method under
SOP 81-1 in accordance with contractual terms and is recorded net of discounts.
Cost and profitability estimates are revised periodically based on changes in
circumstances. Estimated losses on such contracts are recognized immediately.

                                       6
<PAGE>

NOTE 4 - INCOME PER SHARE

Basic income per share is based on the weighted average number of common shares
outstanding during the periods presented. Diluted income per share is computed
using the weighted average number of common and dilutive common equivalent
shares outstanding in the period presented. Dilutive common equivalent shares
assume the exercise of options, calculated under the treasury stock method,
using the average stock market prices during the periods. For the three and six
months ending June 30, 2005, the exercise of options was not assumed since the
effect is antidilutive. For the three and six months ending June 30, 2004, the
dilutive income per share calculation includes 4,285 and 3,319 common share
equivalents resulting from the Company's equity compensation plan.

NOTE 5 - STOCK-BASED COMPENSATION

Prior to 2003, the company accounted for its equity compensation plan under the
recognition and measurement provisions of APB Opinion No. 25, "Accounting for
Stock Issued to Employees," and related interpretations. Effective January 1,
2003, the company adopted the fair value recognition provisions of FASB
Statement of Financial Accounting Standards No. 123, "Accounting for Stock Based
Compensation," prospectively to all employee awards granted, modified, or
settled after December 31, 2002. Awards under the company's plans vest over
periods ranging from three to five years. The following table illustrates the
effect on net income and income per share if the fair value based method had
been applied to all outstanding and unvested awards in each period.

                                                    FOR THE SIX MONTHS ENDED
                                                --------------------------------
                                                JUNE 30, 2005      JUNE 30, 2004
                                                -------------      -------------

         Net income as reported                   $ 284,546         $ 240,814

         Deduct total stock-based
           employee compensation expense
           determined under fair-value-based
           method for all awards, net of tax
           totaling $6,000 in 2005
           and $4,060 in 2004                        (9,017)        ($  7,311)

         Pro forma net income                       275,529         $ 233,503

         Income Per Share:
         Basic and diluted income  per share      $    0.19         $    0.16

The per share average fair value of stock options granted during 2002 ranged
from $14.60 to $14.98. The fair value of the options granted was estimated as of
the grant date using the Black-Scholes option-pricing model. The following
weighted-average assumptions were used in calculating fair value:

                                            2002
                                        ------------
         Expected Life                  5 - 10 years
         Dividends                          None
         Risk-free interest rate            2.65%
         Expected volatility               30.68%

Options issued after December 31, 2002 resulted in stock-based compensation
expense totaling $10,079 and $2,412 for the six months ending June 30, 2005 and
2004, respectively. Restricted shares issued under the plan resulted in a
stock-based compensation expense totaling $7,116 and $0 for the six months
ending June 30, 2005 and 2004, respectively.

                                       7
<PAGE>

NOTE 6 - RECLASSIFICATIONS

Certain reclassifications have been made to the 2003 financial statements to
conform to the 2004 financial statement presentation.

NOTE 7 - RECENT PRONOUNCEMENTS

In December 2004, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 123 (revised 2004),
"Shared-based Payment." ("SFAS 123R"). This statement replaces FASB Statement
No. 123 and supersedes APB Opinion No. 25 The Company is required to adopt SFAS
123R in the first quarter of 2006. SFAS 123R requires that the fair value of all
stock option awards issued to employees be recorded as an expense over the
related vesting period. The Statement also requires the recognition of
compensation expense for fair value of any unvested stock option awards
outstanding at the date of adoption. The Company is evaluating this statement,
but expects no material impact upon adoption.

In March 2005, the FASB issued Interpretation No. 47, "Accounting for
Conditional Asset Retirement Obligations - an interpretation of FASB Statement
No. 143," (FIN 47) which clarifies the term "conditional asset retirement
obligation" used in SFAS No. 143, "Accounting for Asset Retirement Obligations,"
and addresses when an entity would have sufficient information to reasonably
estimate the fair value of an asset retirement obligation. The Company is
required to adopt FIN 47 no later than December 31, 2005. The Company is
evaluating this interpretation, but expects no material impact upon adoption.

NOTE 8 - RECENT DEVELOPMENTS

On August 10, 2005, the Company entered into a Share Purchase Agreement to
acquire all of the outstanding stock of Newstec, Inc., a manufacturer of
inserting equipment located in Walpole, MA.. The Company paid approximately
$4,025,000 in cash and provides Newstec principals the opportunity to earn
additional consideration totaling $650,000 in Quipp stock, based on criteria
specified in the agreement. As a result of the transaction, Newstec became a
wholly-owned subsidiary of Quipp, Inc.

                                       8
<PAGE>

ITEM 2   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

RESULTS OF OPERATIONS:

The following table presents statements of operations expressed as a percentage
of net sales for the periods indicated:

                               THREE MONTHS ENDED          SIX MONTHS ENDED
                                    JUNE 30,                   JUNE 30,
                              -------------------        -------------------
                               2005          2004         2005          2004
                              -----         -----        -----         -----
                           (UNAUDITED)    (Unaudited)  (UNAUDITED)   (Unaudited)
Net sales                     100.0%        100.0%       100.0%        100.0%
Gross profit                   29.9%         25.5%        25.8%         26.8%
Selling, general and
  administrative expenses      24.1%         21.6%        21.7%         22.6%
Research and development        2.5%          3.2%         1.4%          2.7%
Other income, net               1.4%          2.6%         0.8%          1.6%
Net income                      2.9%          2.1%         2.1%          1.9%

THREE MONTHS ENDED JUNE 30, 2005
--------------------------------

NET SALES for the three months ended June 30, 2005 were $5,440,575, a decrease
of $1,855,886 (25.4%) compared to net sales of $7,296,461 for the corresponding
period in 2004. Our net sales for the second quarter were lower compared to the
same period last year mostly due to reduced sales of larger systems, offset in
part by sales of approximately $292,000 of our recently introduced Quipp Packman
packaging system. Net sales in the second quarter of 2004 included revenue
recognized from sales of larger systems. These system sales related to orders
that we received in the second half of 2003, but the equipment subject to the
orders required long lead times to produce and install.

GROSS PROFIT for the three months ended June 30, 2005 was $1,628,858, a decrease
of $233,561 (12.5%), as compared to $1,862,419 for the corresponding period in
2004. Gross profit as a percentage of sales for the three months ended June 30,
2005 increased to 29.9% compared to 25.5% for the corresponding period in 2004.
Our gross margin percentage improved in the second quarter compared to the same
period last year mostly because of product mix. Sales recognized in the second
quarter of 2004 contained a greater percentage of complex systems that
traditionally generate lower profit margins due to competitive pricing pressures
and system complexity. In addition, cost of sales in the second quarter of 2004
included the rework of a gripper conveyor system that was later returned by the
customer. In connection with the rework activities, we redesigned our gripper
conveyor to enhance performance in certain applications. The costs related to
the redesign were charged to research and development in 2004 (see research and
development).

SELLING, GENERAL AND ADMINISTRATIVE expenses for the three months ended June 30,
2005 were $1,312,031, a decrease of $265,953 (16.9%) as compared to $1,577,984
for the corresponding period in 2004. The decrease is due primarily to the
timing of NEXPO, the largest newspaper trade show, and lower variable selling
costs from reduced sales, offset in part by expenses related to compliance
requirements of the Sarbanes-Oxley Act of 2002 and related regulations. In 2005,
NEXPO was held in the first quarter; in 2004, NEXPO was held in the second
quarter.

RESEARCH AND DEVELOPMENT expenses for the three months ended June 30, 2005 were
$133,711, a decrease of $97,008 (42.0%) as compared to $230,719 for the same
period in 2004. For the three months ended June 30, 2005, our research and
development costs consisted mostly of developing and testing the In-Line-C
inserting/collating system with poly-wrapping capabilities. During the
corresponding period in 2004, our research and development efforts related to
software development and testing of the Quipp Packman packaging system, redesign
of the gripper conveyor and product development for the In-Line-C.

                                       9
<PAGE>

OTHER INCOME AND EXPENSE (NET) for the three months ended June 30, 2005 were
$76,798 as compared to $186,365 for the corresponding period in 2004. Interest
income decreased by $53,520 to $54,517 for the three months ended June 30, 2005
compared to $108,037 for the same period in 2004. For the three months ended
June 30, 2004, we recognized interest income related to repayment of a note from
an international customer who previously was delinquent in making payment.
Additionally, royalty income relating to our patented automatic cart loading
system technology used by another supplier of post-press material handling
equipment was $25,000 in the second quarter of 2005 compared to $80,000 during
the same period in 2004.

SIX MONTHS ENDED JUNE 30, 2005
------------------------------

SALES for the six months ended June 30, 2005 were $13,715,339, an increase of
$629,505 (4.8%) compared to net sales of $13,085,834 in the same period in 2004.
Net sales for the first half of 2005 include approximately $1,134,000 from our
recently introduced Quipp Packman packaging system.

GROSS PROFIT for the six months ended June 30, 2005 was $3,535,785, an increase
of $103,232 (3.0%) as compared to $3,432,553 for the corresponding period in
2004. Gross profit as a percentage of sales for the six months ended June 30,
2005 decreased to 25.8% compared to 26.8% for the corresponding period in 2004.
Gross profit as a percentage of net sales was lower than the corresponding
period last year mostly because we generated only a nominal profit margin on
revenue of approximately $2,700,000 for a complex system during the quarter
ending March 31, 2005. This order for the system was negotiated in 2003 when our
market was just beginning to show signs of recovery. We expected lower margins
on this order due to competitive pricing pressures and because it included a
high content of equipment manufactured by others and installation services that
historically produce lower gross profit margins. While we did not generate a
profit over the term of this contract, the order contributed toward coverage of
fixed overhead costs and enabled us to retain skilled personnel whose services
have been required during a period of recovery. We accrued estimated losses
related to this contract in prior periods.

SELLING, GENERAL AND ADMINISTRATIVE expenses for the six months ended June 30,
2005 were $2,983,627, an increase of $79,798 (2.7%) as compared to $2,903,829
for the same period in 2004. The increase is due primarily to the expenses
related to compliance requirements of the Sarbanes-Oxley Act of 2002 and related
regulations.

RESEARCH AND DEVELOPMENT expenses for the six months ended June 30, 2005 were
$192,810, a decrease of $154,487 (44.5%) as compared to $347,297 for the same
period in 2004. For the six months ended June 30, 2005, our research and
development costs pertained mostly to the continued development and testing of
our In-Line-C inserting/collating system with poly-wrapping capabilities. During
the corresponding period in 2004, our research and development efforts related
to software development and testing of the Quipp Packman packaging system,
redesign of the gripper conveyor and product development for the In-Line-C.

OTHER INCOME AND EXPENSE (NET) for the six months ended June 30, 2005 were
$114,884 as compared to $204,748 for the corresponding period in 2004. For the
six months ended June 30, 2004, we recognized interest income related to
repayment of a note from an international customer who previously was delinquent
in making payment. Additionally, royalty income relating to our patented
automatic cart loading system technology used by another supplier of post-press
material handling equipment was $25,000 compared to $80,000 during the same
period in 2004.

GENERAL
Our backlog as of June 30, 2005 was $4,083,000 compared to $8,631,000 at
December 31, 2004 and $8,305,000 at June 30, 2004. We expect to ship all items
in our backlog during the next twelve months. Orders for the six months ended
June 30, 2005 were $8,999,000, compared to orders of $8,308,000 during the six
months ending June 30, 2004.

                                       10
<PAGE>

LIQUIDITY
On June 30, 2005, cash and cash equivalents and securities available for sale
totaled $9,401,317 as compared to $8,739,207 at December 31, 2004, an increase
of $662,110. Working capital on June 30, 2005 was $10,252,672, an increase of
$434,869 from $9,817,803 at December 31, 2004. The Company believes that its
cash, cash equivalents and securities available for sale together with cash
generated from operations will be sufficient to fund operations at the current
level.

FORWARD LOOKING STATEMENTS
--------------------------
The quarterly report on Form 10-Q contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements relating to shipment of backlog orders and adequacy of available
resources. A number of important factors could cause actual results to differ
materially from those in the forward looking statements including, but not
limited to, economic conditions generally and specifically in the newspaper
industry, demand and market acceptance for new and existing products, the impact
of competitive products and pricing, manufacturing capacity, delays in shipment,
cancellation of customer orders, unanticipated expenses and engineering and
production difficulties.

ITEM 3   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

MARKET RISK
We are exposed to various types of market risk, including changes in interest
rates. Market risk is the potential loss arising from adverse changes in market
rates and prices such as interest rates. We do not enter into derivatives or
other financial instruments for trading or speculative purposes. Because our
cash and investments exceed short and long-term debt, the exposure to interest
rates relates primarily to our investment portfolio. Due to the short-term
maturities of our investments, we believe there is no significant risk arising
from interest rate fluctuations. To ensure safety and liquidity, we only invest
in instruments with credit quality and which are traded in a secondary market.
The counterparties are major financial institutions and government agencies.

ITEM 4   CONTROLS AND PROCEDURES

(a)      Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the our Chief Executive Officer and
principal financial officer, evaluated the effectiveness of our disclosure
controls and procedures as of the end of the period covered by this report.
Based on that evaluation, the Chief Executive Officer and principal financial
officer concluded that our disclosure controls and procedures as of the end of
the period covered by this report are functioning effectively to provide
reasonable assurance that the information required to be disclosed in reports
filed under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the SEC's rules and
forms.

(b)      Change in Internal Control over Financial Reporting

No change in our internal control over financial reporting occurred during our
most recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.

                                       11
<PAGE>

PART II - OTHER INFORMATION

ITEM 4   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On June 7, 2005, we held our annual meeting of shareholders (the "Annual
Meeting"). At the Annual Meeting, the shareholders voted on the election of six
directors, a proposal to amend and restate our Equity Compensation Plan and a
proposal to ratify the appointment of KPMG LLP as our independent accountants
for 2005.

The voting results at the Annual Meeting were as follows:

1.       Election of Directors

         NAME OF NOMINEE                 FOR             WITHHELD
         ---------------                 ---             --------
         William A. Dambrackas        1,190,698            4,192
         Lawrence J. Gibson           1,190,180            4,710
         Michael S. Kady              1,190,988            3,902
         Cristina H. Kepner           1,191,008            3,882
         Arthur J. Rawl               1,190,998            3,892
         Robert C. Strandberg         1,190,698            4,192

2.       Amendment and Restatement of the Quipp Equity Compensation Plan.

                                                                 BROKER
               FOR            AGAINST          ABSTAIN          NON-VOTES
               ---            -------          -------          ---------
             581,215          205,402           4,942            403,331

3.       Ratification of the Appointment of KPMG LLP as our independent public
         accountants for 2005.

                                                                 BROKER
               FOR            AGAINST          ABSTAIN          NON-VOTES
               ---            -------          -------          ---------
           1,193,878              510             502                  0

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ITEM 6   EXHIBITS

The following exhibits are filed with this report:

3.1      Articles of Incorporation, as amended (Incorporated by reference to
         Exhibit 3.2 to the Registrant's Quarterly Report on Form 10Q for the
         quarter ended June 30, 2004).

3.2      By-Laws, as amended (Incorporated by reference to Exhibit 3.3 to the
         Registrant's Quarterly Report on Form 10Q for the quarter ended June
         30, 2004).

31.1     Certificate of the Chief Executive Officer of the Registrant required
         by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2     Certificate of the principal financial officer of the Registrant
         required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1     Certificate of the Chief Executive Officer of the Registrant required
         by Rule 13a-14(b) under the Securities Exchange Act of 1934.

32.2     Certificate of the principal financial officer of the Registrant
         required by Rule 13a-14(b) under the Securities Exchange Act of 1934.

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<PAGE>

                                   SIGNATURE

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

                                           QUIPP, INC.

         Date:  August 15, 2005            By: /S/ Michael S. Kady
                                               ---------------------
                                           Michael S. Kady
                                           President and Chief Executive Officer


                                           By: /S/ Eric Bello
                                               --------------
                                           Eric Bello
                                           Treasurer (Principal financial and
                                           accounting officer)

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