----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**(x)      Quarterly Report Pursuant to Section 13 or 15(d) of**

**the      Securities Exchange Act of 1934**

**(      ) Transition Report Pursuant to Section 13 or 15(d) of**

**the      Securities Exchange Act of 1934**

| **ANALYSTS                INTERNATIONAL CORPORATION**                                                      |
|------------------------------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its charter)                                      |
|                                                                                                       |
| **Minnesota**                                                                                              | **41-0905408** |
| (State                of Incorporation)                                                                    | (IRS                Employer Identification No.) |
|                                                                                                       |   |
| **3601                West 76****th****Street**                                                            |   |
| **Minneapolis,                MN**                                                                         | **55435** |
| (Address                of Principal Executive Offices)                                                    | (Zip                Code) |
|                                                                                                       |   |
| Registrant’s                telephone number, including area code: **(952)                835-5900** |

----

----

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**ANALYSTS      INTERNATIONAL CORPORATION**

**INDEX**

| **Part                I.**   | **FINANCIAL                INFORMATION**                                                                                  |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                      |
| Item                1.       | Financial                Statements                                                                                       |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Balance                Sheets                                                       |
|                         | October                1, 2005 (Unaudited) and January 1,                2005                                             |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Statements of                Operations                                             |
|                         | Three                and nine months ended October 1, 2005 and                October 2, 2004 (Unaudited)                 |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Statements of Cash                Flows                                             |
|                         | Three                and nine months ended October 1, 2005 and                October 2, 2004 (Unaudited)                 |
|                         |                                                                                                                      |
|                         | Notes                to Condensed Consolidated Financial                Statements (Unaudited)                            |
|                         |                                                                                                                      |
| Item                2.       | Management’s                Discussion and Analysis of Financial                Condition and Results of Operations |
|                         |                                                                                                                      |
| Item                3.       | Quantitative                and Qualitative Disclosures About                Market Risk                                  |
|                         |                                                                                                                      |
| Item                4.       | Controls                and Procedures                                                                                    |
|                         |                                                                                                                      |
| **Part                II.**  | **OTHER                INFORMATION**                                                                                      |
|                         |                                                                                                                      |
| Item                4.       | Submission                of Matters to a Vote of Security                Holders                                         |
|                         |                                                                                                                      |
| Item                6.       | Exhibits                                                                                                                  |
|                         |                                                                                                                      |
| Signatures                   |
|                         |                                                                                                                      |
| Exhibit                Index |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**Analysts      International Corporation**

**Condensed      Consolidated Balance Sheets**

|                                                                     |   | **October                1,** |    | **January                1,** |   |
|--------------------------------------------------------------------------|--------|-------------------------------|---------|-------------------------------|--------|
| ***(In                thousands)***                                      |   | **2005**                      |    | **2005**                      |   |
|                                                                     |   | ***(Unaudited)***             |    |                          |   |
| **ASSETS**                                                               |   |                          |    |                          |   |
|                                                                     |   |                          |    |                          |   |
| Current                assets:                                           |   |                          |    |                          |   |
| Cash                and cash equivalents                                 |   | $                             | 100     |                          | $      | 7,889 |   |
| Accounts                receivable, less allowance for doubtful accounts |   |                          | 63,224  |                          |   | 57,764 |   |
| Prepaid                expenses and other current assets                 |   |                          | 3,188   |                          |   | 3,208 |   |
| Total                current assets                                      |   |                          | 66,512  |                          |   | 68,861 |   |
|                                                                     |   |                          |    |                          |   |   |   |
| Property                and equipment, net                               |   |                          | 4,749   |                          |   | 5,658 |   |
| Intangible                assets                                         |   |                          | 12,551  |                          |   | 10,475 |   |
| Goodwill                                                                 |   |                          | 11,835  |                          |   | 16,460 |   |
| Other                assets                                              |   |                          | 5,306   |                          |   | 4,223 |   |
|                                                                     |   | $                             | 100,953 |                          | $      | 105,677 |   |
|                                                                     |   |                          |    |                          |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS' EQUITY**                  |   |                          |    |                          |   |   |   |
|                                                                     |   |                          |    |                          |   |   |   |
| Current                liabilities:                                      |   |                          |    |                          |   |   |   |
| Accounts                payable                                          |   | $                             | 19,991  |                          | $      | 16,366 |   |
| Salaries                and vacations                                    |   |                          | 6,541   |                          |   | 9,388 |   |
| Line                of credit                                            |   |                          | 6,794   |                          |   | - |   |
| Deferred                revenue                                          |   |                          | 2,464   |                          |   | 1,658 |   |
| Self-insured                health care reserves and other amounts       |   |                          | 4,382   |                          |   | 1,759 |   |
| Restructuring                accruals, current portion                   |   |                          | 1,522   |                          |   | 251 |   |
| Total                current liabilities                                 |   |                          | 41,694  |                          |   | 29,422 |   |
|                                                                     |   |                          |    |                          |   |   |   |
| Restructuring                accruals, non-current portion               |   |                          | 821     |                          |   | 67 |   |
| Deferred                compensation                                     |   |                          | 3,159   |                          |   | 3,570 |   |
| Shareholders'                equity                                      |   |                          | 55,279  |                          |   | 72,618 |   |
|                                                                     |   | $                             | 100,953 |                          | $      | 105,677 |   |

----

**Analysts      International      Corporation**

**Condensed      Consolidated Statements of Operations**

*(Unaudited)*

|                                                                   |   | **Three                Months Ended** |    | **Nine                Months Ended** |   |
|------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                                   |   | **October                1,**         |    | **October                2,**        |   | **October                1,** |   | **October                2,** |   |
| ***(In                thousands except per share amounts)***           |   | **2005**                              |    | **2004**                             |   | **2005** |   | **2004** |   |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |
| Revenue:                                                               |   |                                  |    |                                 |   |   |   |   |   |
| Professional                services provided directly                 |   | $                                     | 65,042  |                                 | $      | 68,275 |   | $ | 197,359 |   | $ | 203,210 |   |
| Professional                services provided through subsuppliers     |   |                                  | 7,757   |                                 |   | 14,340 |   |   | 22,874 |   |   | 43,446 |   |
| Product                sales                                           |   |                                  | 5,445   |                                 |   | 3,765 |   |   | 16,214 |   |   | 11,983 |   |
| Total                revenue                                           |   |                                  | 78,244  |                                 |   | 86,380 |   |   | 236,447 |   |   | 258,639 |   |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Expenses:                                                              |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Salaries,                contracted services and direct charges        |   |                                  | 59,261  |                                 |   | 66,504 |   |   | 177,220 |   |   | 199,365 |   |
| Cost                of product sales                                   |   |                                  | 4,820   |                                 |   | 3,491 |   |   | 14,731 |   |   | 11,088 |   |
| Selling,                administrative and other operating costs       |   |                                  | 16,031  |                                 |   | 14,910 |   |   | 47,395 |   |   | 45,150 |   |
| Amortization                of intangible assets                       |   |                                  | 342     |                                 |   | 193 |   |   | 729 |   |   | 580 |   |
| Merger                related costs                                    |   |                                  | 1,225   |                                 |   | -- |   |   | 2,113 |   |   | -- |   |
| Restructuring                and other severance related costs         |   |                                  | 3,161   |                                 |   | -- |   |   | 3,904 |   |   | -- |   |
| Asset                write-off                                         |   |                                  | 1,817   |                                 |   | -- |   |   | 1,817 |   |   | -- |   |
| Goodwill                impairment                                     |   |                                  | 7,050   |                                 |   | -- |   |   | 7,050 |   |   | -- |   |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Operating                (loss) income                                 |   |                                  | (15,463 | )                                    |   | 1,282 |   |   | (18,512 | ) |   | 2,456 |   |
| Non-operating                income                                    |   |                                  | 4       |                                 |   | 9 |   |   | 26 |   |   | 17 |   |
| Interest                expense                                        |   |                                  | (125    | )                                    |   | (7 | ) |   | (179 | ) |   | (29 | ) |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| (Loss)                income before income taxes                       |   |                                  | (15,584 | )                                    |   | 1,284 |   |   | (18,665 | ) |   | 2,444 |   |
| Income                tax expense (benefit)                            |   |                                  | --      |                                 |   | -- |   |   | -- |   |   | -- |   |
| Net                (loss) income                                       |   | $                                     | (15,584 | )                                    | $      | 1,284 |   | $ | (18,665 | ) | $ | 2,444 |   |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Per                common share:                                       |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Basic                (loss) income                                     |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |
| Diluted                (loss) income                                   |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |
|                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding                       |   |                                  | 24,565  |                                 |   | 24,212 |   |   | 24,462 |   |   | 24,212 |   |
| Average                common and common equivalent shares outstanding |   |                                  | 24,565  |                                 |   | 24,468 |   |   | 24,462 |   |   | 24,317 |   |

----

**Analysts      International      Corporation**

**Condensed      Consolidated Statements of Cash Flows**

*(Unaudited)*

|                                                               |   | **Nine                Months Ended** |   |
|--------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                               |   | **October                1,**        |   | **October                2,** |   |
| ***(In                thousands)***                                |   | **2005**                             |   | **2004** |   |
|                                                               |   |                                 |   |   |   |
| Net                cash (used in) provided by operating activities |   | $                                    | (6,743 | ) | $ | 826 |   |
|                                                               |   |                                 |   |   |   |   |   |
| Cash                flows from investing activities:               |   |                                 |   |   |   |   |   |
| Property                and equipment additions                    |   |                                 | (2,907 | ) |   | (1,800 | ) |
| Proceeds                from property and equipment sales          |   |                                 | 15     |   |   | 15 |   |
| Payments                for acquisitions, net of cash acquired     |   |                                 | (5,046 | ) |   | -- |   |
| Net                cash used in investing activities               |   |                                 | (7,938 | ) |   | (1,785 | ) |
|                                                               |   |                                 |   |   |   |   |   |
| Cash                flows from financing activities:               |   |                                 |   |   |   |   |   |
| Net                change in working capital line of credit        |   |                                 | 6,794  |   |   | -- |   |
| Proceeds                from exercise of stock options             |   |                                 | 98     |   |   | 1 |   |
| Net                cash provided by financing activities           |   |                                 | 6,892  |   |   | 1 |   |
|                                                               |   |                                 |   |   |   |   |   |
| Net                decrease in cash and cash equivalents           |   |                                 | (7,789 | ) |   | (958 | ) |
|                                                               |   |                                 |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period    |   |                                 | 7,889  |   |   | 4,499 |   |
|                                                               |   |                                 |   |   |   |   |   |
| Cash                and cash equivalents at end of period          |   | $                                    | 100    |   | $ | 3,541 |   |
|                                                               |   |                                 |   |   |   |   |   |
| **Non-cash                activities:**                            |   |                                 |   |   |   |   |   |
| Value                of common stock issued for acquisitions       |   | $                                    | 1,000  |   |   | -- |   |
| Value                of common stock issued for stock awards       |   | $                                    | 28     |   |   | -- |   |

----

**Analysts      International      Corporation**

**Notes      to Condensed Consolidated Financial Statements**

**1.**
**Summary      of Significant Accounting Policies**

|                                            |   | **October                1, 2005** |   | **January                1, 2005** |   |
|-------------------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|
|   ***(In                thousands)*** |   | **Gross****Carrying****Amount**    |   | **Accumulated****Amortization**    |   | **Other****Intangibles,****Net** |   | **Gross****Carrying****Amount** |   | **Accumulated****Amortization** |   | **Other****Intangibles,****Net** |   |
|                                            |   |                               |   |                               |   |   |   |   |   |   |   |   |   |
| Customer                lists                   |   | $                                  | 15,075 |                               | $      | (4,111 | ) | $ | 10,964 |   | $ | 12,270 |   | $ | (3,382 | ) | $ | 8,888 |   |
| Tradename                                       |   |                               | 1,720  |                               |   | (133 | ) |   | 1,587 |   |   | 1,720 |   |   | (133 | ) |   | 1,587 |   |
|                                            |   | $                                  | 16,795 |                               | $      | (4,244 | ) | $ | 12,551 |   | $ | 13,990 |   | $ | (3,515 | ) | $ | 10,475 |   |

----

|                                                                                                                                                                          |   | **Three                Months Ended** |    | **Nine                Months Ended** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                                                                                                                                          |   | **October                1,**         |    | **October                2,**        |   | **October                1,** |   | **October                2,** |   |
| ***(in                thousands except per share amounts)***                                                                                                                  |   | **2005**                              |    | **2004**                             |   | **2005** |   | **2004** |   |
|                                                                                                                                                                          |   |                                  |    |                                 |   |   |   |   |   |
| Net                (loss) income as reported                                                                                                                                  |   | $                                     | (15,584 | )                                    | $      | 1,284 |   | $ | (18,665 | ) | $ | 2,444 |   |
| Deduct:                Total stock-based employee compensation expense determined under                the fair                value based method, net of related tax effects |   |                                  | (135    | )                                    |   | (129 | ) |   | (371 | ) |   | (421 | ) |
| Pro                forma net (loss) income                                                                                                                                    |   | $                                     | (15,719 | )                                    | $      | 1,155 |   | $ | (19,036 | ) | $ | 2,023 |   |
|                                                                                                                                                                          |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Net                (loss) income per share:                                                                                                                                   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Basic                - as reported                                                                                                                                            |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |
| Basic                - pro forma                                                                                                                                              |   |                                  | (.64    | )                                    |   | .05 |   |   | (.78 | ) |   | .08 |   |
|                                                                                                                                                                          |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Diluted                - as reported                                                                                                                                          |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |
| Diluted                - pro forma                                                                                                                                            |   |                                  | (.64    | )                                    |   | .05 |   |   | (.78 | ) |   | .08 |   |

**2.**
**Line      of Credit**

**3.**
**Shareholders'      Equity**

|                                                 |   | **Nine                Months Ended** |    |
|------------------------------------------------------|--------|--------------------------------------|---------|
| ***(In                thousands)***                  |   | **October                1, 2005**   |    |
|                                                 |   |                                 |    |
| Balance                at beginning of period        |   | $                                    | 72,618  |   |
|                                                 |   |                                 |    |   |
| Issuance                of common stock              |   |                                 | 1,126   |   |
| Amortization                of deferred compensation |   |                                 | 200     |   |
| Comprehensive                loss                    |   |                                 | (18,665 | ) |
|                                                 |   |                                 |    |   |
| Balance                at end of period              |   | $                                    | 55,279  |   |

----

**4.**
**Earnings      Per Share**

|                                                                                      |   | **Three                Months Ended** |    | **Nine                Months Ended** |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                                                      |   | **October                1,**         |    | **October                2,**        |   | **October                1,** |   | **October                2,** |   |
| ***(In                thousands, except per share amounts)***                             |   | **2005**                              |    | **2004**                             |   | **2005** |   | **2004** |   |
|                                                                                      |   |                                  |    |                                 |   |   |   |   |   |
| Net                (loss) income                                                          |   | $                                     | (15,584 | )                                    | $      | 1,284 |   | $ | (18,665 | ) | $ | 2,444 |   |
|                                                                                      |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Weighted-average                number of common shares outstanding                       |   |                                  | 24,565  |                                 |   | 24,212 |   |   | 24,462 |   |   | 24,212 |   |
| Dilutive                effect of employee stock options                                  |   |                                  | --      |                                 |   | 256 |   |   | -- |   |   | 105 |   |
| Weighted-average                number of common and common equivalent shares outstanding |   |                                  | 24,565  |                                 |   | 24,468 |   |   | 24,462 |   |   | 24,317 |   |
|                                                                                      |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Net                (loss) income per share:                                               |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Basic                                                                                     |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |
| Diluted                                                                                   |   | $                                     | (.63    | )                                    | $      | .05 |   | $ | (.76 | ) | $ | .10 |   |

**5.**
**Restructuring**

|                                                 |   | **Workforce** |   | **Office                Closure/** |   |      |   |
|------------------------------------------------------|--------|---------------|--------|------------------------------------|--------|-----------|--------|
| ***(In                thousands)***                  |   | **Reduction** |   | **Consolidation**                  |   | **Total** |   |
|                                                 |   |          |   |                               |   |      |   |
| Balance                at January 1, 2005            |   | $             | --     |                               | $      | 318       |   | $ | 318 |   |
|                                                 |   |          |   |                               |   |      |   |   |   |   |
| Additional                restructuring charge       |   |          | 605    |                               |   | 2,253     |   |   | 2,858 |   |
|                                                 |   |          |   |                               |   |      |   |   |   |   |
| Cash                expenditures                     |   |          | (66    | )                                  |   | (189      | )      |   | (255 | ) |
|                                                 |   |          |   |                               |   |      |   |   |   |   |
| Write-off                of deferred leasehold costs |   |          | --     |                               |   | (578      | )      |   | (578 | ) |
|                                                 |   |          |   |                               |   |      |   |   |   |   |
| Balance                at October 1, 2005            |   | $             | 539    |                               | $      | 1,804     |   | $ | 2,343 |   |

----

**6.**
**Acquisitions**

*Redwood      Solutions Corporation*

*WireSpeed      Networks LLC *

**7.**
**Asset      Write-Off**

**8.**
**Goodwill**

----

**Item      2. Management's Discussion and Analysis of Financial      Condition and Results of Operations**

*Forward      Looking Statements*

----

*Estimates      of Future Operating Results*

*Allowance      for Doubtful Accounts*

*Accrual      of Unreported Medical Claims*

----

*Revenue      Recognition*

*Subsupplier      Revenue*

*Goodwill      and Intangible Impairment*

*Deferred      Taxes*

----

*Restructuring      Charge*

----

**RESULTS      OF OPERATIONS, THREE- AND NINE- MONTH PERIODS ENDED OCTOBER 1, 2005 VS. OCTOBER      2, 2004**

|                                                               |   | Three                Months Ended |    | Three                Months Ended |   |                               |   |
|--------------------------------------------------------------------|--------|-----------------------------------|---------|-----------------------------------|--------|------------------------------------|--------|
|                                                               |   | October                1, 2005    |    | October                2, 2004    |   | Increase                (Decrease) |   |
|                                                               |   |                              |    | %                of               |   |                               |   | %                of |   |  |   |  % |   | As                % of |   |
| *(dollars                in thousands)*                            |   | Amount                            |    | Revenue                           |   | Amount                             |   | Revenue |   | Amount |   | Inc                (Dec) |   | Revenue |   |
| Revenue:                                                           |   |                              |    |                              |   |                               |   |   |   |   |   |   |   |   |   |
| Professional                services provided directly             |   | $                                 | 65,042  |                              |   | 83.1                               | %      | $ | 68,275 |   |   | 79.0 | % | $ | (3,233 | ) |   | (4.7 | )% |   | 4.1 | % |
| Professional                services provided through subsuppliers |   |                              | 7,757   |                              |   | 9.9                                |   |   | 14,340 |   |   | 16.6 |   |   | (6,583 | ) |   | (45.9 | ) |   | (6.7 | ) |
| Product                sales                                       |   |                              | 5,445   |                              |   | 7.0                                |   |   | 3,765 |   |   | 4.4 |   |   | 1,680 |   |   | 44.6 |   |   | 2.6 |   |
| Total                revenue                                       |   |                              | 78,244  |                              |   | 100.0                              |   |   | 86,380 |   |   | 100.0 |   |   | (8,136 | ) |   | (9.4 | ) |   | .0 |   |
| Salaries,                contracted services and direct charges    |   |                              | 59,261  |                              |   | 75.7                               |   |   | 66,504 |   |   | 77.0 |   |   | (7,243 | ) |   | (10.9 | ) |   | (1.3 | ) |
| Cost                of product sales                               |   |                              | 4,820   |                              |   | 6.2                                |   |   | 3,491 |   |   | 4.0 |   |   | 1,329 |   |   | 38.1 |   |   | 2.2 |   |
| Selling,                administrative and other operating costs   |   |                              | 16,031  |                              |   | 20.5                               |   |   | 14,910 |   |   | 17.3 |   |   | 1,121 |   |   | 7.5 |   |   | 3.2 |   |
| Merger                related costs                                |   |                              | 1,225   |                              |   | 1.6                                |   |   | -- |   |   | -- |   |   | 1,225 |   |   | 100.0 |   |   | 1.6 |   |
| Amortization                of intangible assets                   |   |                              | 342     |                              |   | .4                                 |   |   | 193 |   |   | .2 |   |   | 149 |   |   | 77.2 |   |   | .2 |   |
| Restructuring                and other severance related costs     |   |                              | 3,161   |                              |   | 4.0                                |   |   | -- |   |   | -- |   |   | 3,161 |   |   | 100.0 |   |   | 4.0 |   |
| Asset                write-off                                     |   |                              | 1,817   |                              |   | 2.3                                |   |   | -- |   |   | -- |   |   | 1,817 |   |   | 100.0 |   |   | 2.3 |   |
| Goodwill                impairment                                 |   |                              | 7,050   |                              |   | 9.0                                |   |   | -- |   |   | -- |   |   | 7,050 |   |   | 100.0 |   |   | 9.0 |   |
| Non-operating                income                                |   |                              | (4      | )                                 |   | (.0                                | )      |   | (9 | ) |   | (.0 | ) |   | 5 |   |   | (55.6 | ) |   | .0 |   |
| Interest                expense                                    |   |                              | 125     |                              |   | .2                                 |   |   | 7 |   |   | .0 |   |   | 118 |   |   | 1,685.7 |   |   | .2 |   |
|                                                               |   |                              |    |                              |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                income before income taxes                   |   |                              | (15,584 | )                                 |   | (19.9                              | )      |   | 1,284 |   |   | 1.5 |   | $ | (16,868 | ) |   | (1,313.7 | ) |   | (21.4 | ) |
| Income                tax expense (benefit )                       |   |                              | --      |                              |   | .0                                 |   |   | -- |   |   | .0 |   |   | -- |   |   | .0 |   |   | .0 |   |
|                                                               |   |                              |    |                              |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                (loss) income                                   |   | $                                 | (15,584 | )                                 |   | (19.9                              | )%     | $ | 1,284 |   |   | 1.5 | % | $ | (16,868 | ) |   | (1,313.7 | )% |   | (21.4 | )% |

|                                                               |   | Nine                Months Ended |    | Nine                Months Ended |   |                               |   |
|--------------------------------------------------------------------|--------|----------------------------------|---------|----------------------------------|--------|------------------------------------|--------|
|                                                               |   | October                1, 2005   |    | October                2, 2004   |   | Increase                (Decrease) |   |
|                                                               |   |                             |    | %                of              |   |                               |   | %                of |   |  |   | %  |   | As                % of |   |
| *(dollars                in thousands)*                            |   | Amount                           |    | Revenue                          |   | Amount                             |   | Revenue |   | Amount |   | Inc                (Dec) |   | Revenue |   |
| Revenue:                                                           |   |                             |    |                             |   |                               |   |   |   |   |   |   |   |   |   |
| Professional                services provided directly             |   | $                                | 197,359 |                             |   | 83.5                               | %      | $ | 203,210 |   |   | 78.6 | % | $ | (5,851 | ) |   | (2.9 | )% |   | 4.9 | % |
| Professional                services provided through subsuppliers |   |                             | 22,874  |                             |   | 9.7                                |   |   | 43,446 |   |   | 16.8 |   |   | (20,572 | ) |   | (47.4 | ) |   | (7.1 | ) |
| Product                sales                                       |   |                             | 16,214  |                             |   | 6.8                                |   |   | 11,983 |   |   | 4.6 |   |   | 4,231 |   |   | 35.3 |   |   | 2.2 |   |
| Total                revenue                                       |   |                             | 236,447 |                             |   | 100.0                              |   |   | 258,639 |   |   | 100.0 |   |   | (22,192 | ) |   | (8.6 | ) |   | .0 |   |
| Salaries,                contracted services and direct charges    |   |                             | 177,220 |                             |   | 75.0                               |   |   | 199,365 |   |   | 77.1 |   |   | (22,145 | ) |   | (11.1 | ) |   | (2.1 | ) |
| Cost                of product sales                               |   |                             | 14,731  |                             |   | 6.2                                |   |   | 11,088 |   |   | 4.3 |   |   | 3,643 |   |   | 32.9 |   |   | 1.9 |   |
| Selling,                administrative and other operating costs   |   |                             | 47,395  |                             |   | 20.0                               |   |   | 45,150 |   |   | 17.5 |   |   | 2,245 |   |   | 5.0 |   |   | 2.5 |   |
| Merger                related costs                                |   |                             | 2,113   |                             |   | .9                                 |   |   | -- |   |   | -- |   |   | 2,113 |   |   | 100.0 |   |   | .9 |   |
| Amortization                of intangible assets                   |   |                             | 729     |                             |   | .3                                 |   |   | 580 |   |   | .2 |   |   | 149 |   |   | 25.7 |   |   | .1 |   |
| Restructuring                and other severance related costs     |   |                             | 3,904   |                             |   | 1.6                                |   |   | -- |   |   | -- |   |   | 3,904 |   |   | 100.0 |   |   | 1.6 |   |
| Asset                write-off                                     |   |                             | 1,817   |                             |   | .8                                 |   |   | -- |   |   | -- |   |   | 1,817 |   |   | 100.0 |   |   | .8 |   |
| Goodwill                impairment                                 |   |                             | 7,050   |                             |   | 3.0                                |   |   | -- |   |   | -- |   |   | 7,050 |   |   | 100.0 |   |   | 3.0 |   |
| Non-operating                income                                |   |                             | (26     | )                                |   | (.0                                | )      |   | (17 | ) |   | (.0 | ) |   | (9 | ) |   | 52.9 |   |   | .0 |   |
| Interest                expense                                    |   |                             | 179     |                             |   | .1                                 |   |   | 29 |   |   | .0 |   |   | 150 |   |   | 517.2 |   |   | .1 |   |
|                                                               |   |                             |    |                             |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                income before income taxes                   |   |                             | (18,665 | )                                |   | (7.9                               | )      |   | 2,444 |   |   | .9 |   |   | (21,109 | ) |   | (863.7 | ) |   | (8.8 | ) |
| Income                tax expense (benefit )                       |   |                             | --      |                             |   | .0                                 |   |   | -- |   |   | .0 |   |   | -- |   |   | .0 |   |   | .0 |   |
|                                                               |   |                             |    |                             |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                (loss) income                                   |   | $                                | (18,665 | )                                |   | (7.9                               | )%     | $ | 2,444 |   |   | .9 | % | $ | (21,109 | ) |   | (863.7 | )% |   | (8.8 | )% |
|                                                               |   |                             |    |                             |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Personnel:                                                         |   |                             |    |                             |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Management                and administrative                       |   |                             | 435     |                             |   |                               |   |   | 415 |   |   |   |   |   | 20 |   |   | 4.8 | % |   |   |   |
| Technical                consultants                               |   |                             | 2,750   |                             |   |                               |   |   | 2,630 |   |   |   |   |   | 120 |   |   | 4.6 | % |   |   |   |

----

*Revenue*

*Salaries,      Contracted Services and Direct Charges*

*Cost      of Product Sales*

*Selling,      Administrative and Other Operating Costs*

*Merger      Related Costs*

----

*Amortization      of Intangible Assets*

*Restructuring      and Other Severance Related Costs*

*Asset      Write-Off*

*Goodwill      Impairment*

*Non-Operating      Income*

*Interest      Expense*

*Income      Taxes*

*Personnel*

----

|                                                   |   |                          |   |                          |   |           |   | **Percentage** |    |
|--------------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|----------------|--------|----------------|---------|
|                                                   |   | **October                1,** |   | **January                1,** |   | **Increase**   |   | **Increase**   |    |
| ***(In                thousands except percentages)*** |   | **2005**                      |   | **2005**                      |   | **(Decrease)** |   | **(Decrease)** |    |
|                                                   |   |                          |   |                          |   |           |   |           |    |
| Cash                and Cash Equivalents               |   | $                             | 100    |                          | $      | 7,889          |   | $              | (7,789  | ) |   | (98.7 | )% |
| Accounts                Receivable                     |   |                          | 63,224 |                          |   | 57,764         |   |           | 5,460   |   |   | 9.5 |   |
| Other                Current Assets                    |   |                          | 3,188  |                          |   | 3,208          |   |           | (20     | ) |   | (0.6 | ) |
| Total                Current Assets                    |   | $                             | 66,512 |                          | $      | 68,861         |   | $              | (2,349  | ) |   | (3.4 | ) |
|                                                   |   |                          |   |                          |   |           |   |           |    |   |   |   |   |
| Accounts                Payable                        |   | $                             | 19,991 |                          | $      | 16,366         |   | $              | 3,625   |   |   | 22.1 |   |
| Salaries                and Vacations                  |   |                          | 6,541  |                          |   | 9,388          |   |           | (2,847  | ) |   | (30.3 | ) |
| Line                of Credit                          |   |                          | 6,794  |                          |   | --             |   |           | 6,794   |   |   | 100.0 |   |
| Restructuring                accruals - current        |   |                          | 1,522  |                          |   | 251            |   |           | 1,271   |   |   | 506.4 |   |
| Other                Current Liabilities               |   |                          | 6,846  |                          |   | 3,417          |   |           | 3,429   |   |   | 100.4 |   |
| Total                Current Liabilities               |   | $                             | 41,694 |                          | $      | 29,422         |   | $              | 12,272  |   |   | 41.7 |   |
|                                                   |   |                          |   |                          |   |           |   |           |    |   |   |   |   |
| Working                Capital                         |   | $                             | 24,818 |                          | $      | 39,439         |   | $              | (14,621 | ) |   | (37.1 | ) |
| Current                Ratio                           |   |                          | 1.60   |                          |   | 2.34           |   |           | (.74    | ) |   | (31.6 | ) |
|                                                   |   |                          |   |                          |   |           |   |           |    |   |   |   |   |
| Total                Shareholders’ Equity        |   | $                             | 55,279 |                          | $      | 72,618         |   | $              | (17,339 | ) |   | (23.9 | )% |

*Cash      Requirements*

*Sources      and Uses of Cash/Credit Facility*

----

|  ***(in                thousands)*** |   |  **1                Year** |   |  **2-3                Years** |   |  **4-5                Years** |   | **Over                5****Years** |   |  **Total** |   |
|-------------------------------------------|--------|---------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|-----------------|--------|
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |
| Operating                Leases           |   | $                               | 4,890  |                               | $      | 5,799                              |   | $                                  | 463    |            | $      | -- |   | $ | 11,152 |   |
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |   |   |   |   |   |
| Deferred                Compensation      |   |                            | 1,783  |                               |   | 1,069                              |   |                               | 332    |            |   | 441 |   |   | 3,625 |   |
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |   |   |   |   |   |
| Total                                     |   | $                               | 6,673  |                               | $      | 6,868                              |   | $                                  | 795    |            | $      | 441 |   | $ | 14,777 |   |

* *

----

----

----

**Item      3. Quantitative and Qualitative Disclosures About      Market Risk**

**Item      4. Controls and Procedures**

**PART      II. OTHER INFORMATION**

**Item      4. Submission of Matters to a Vote of Security      Holders**

| In                  favor | 15,792,490 |
|---------------------------|------------|
| Against                   | 557,961    |
| Abstain                   | 31,390     |

| In                favor | 14,338,840 |
|-------------------------|------------|
| Against                 | 1,962,699  |
| Abstain                 | 80,302     |

**Item      6. Exhibits**

| Exhibit                31.1 |   | Certification                of CEO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                                                                                               |
| Exhibit                31.2 |   | Certification                of CFO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
|                        |   |                                                                                                                                                                                               |
| Exhibit                32   |   | Certification                of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                section 906 of the Sarbanes Oxley Act of                2002. |

----

**SIGNATURES**

|                                   | ANALYSTS                INTERNATIONAL CORPORATION |
|----------------------------------------|---------------------------------------------------|
|                                   | (Registrant)                                      |
|                                   |                                              |   |
|                                   |                                              |   |
|                                   |                                              |   |
| Date:                November 10, 2005 | By:                                               | /s/                Michael J. LaVelle |
|                                   |                                              | Michael                J. LaVelle |
|                                   |                                              | Chief                Executive Officer |
|                                   |                                              |   |
|                                   |                                              |   |
| Date:                November 10, 2005 | By:                                               | David                J. Steichen |
|                                   |                                              | David                J. Steichen |
|                                   |                                              | Chief                Financial Officer |
|                                   |                                              | (Principal                Financial and Accounting Officer) |

----

**EXHIBIT      INDEX**

| Exhibit                31.1 |   | Certification                of CEO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                                                                                               |
| Exhibit                31.2 |   | Certification                of CFO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
|                        |   |                                                                                                                                                                                               |
| Exhibit                32   |   | Certification                of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                section 906 of the Sarbanes Oxley Act of                2002. |

----