----

----

**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** |

----

----

----

**ANALYSTS      INTERNATIONAL CORPORATION**

**INDEX**

|                                                           |                                                                                                                      |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| **Part                I.**                                     | **FINANCIAL                INFORMATION**                                                                                  |
|                                                           |                                                                                                                      |
| Item                1.                                         | Financial                Statements                                                                                       |
|                                                           |                                                                                                                      |
|                                                           | Condensed                Consolidated Balance                Sheets                                                       |
|                                                           | April                1, 2006 (Unaudited) and December 31,                2005                                             |
|                                                           |                                                                                                                      |
|                                                           | Condensed                Consolidated Statements of                Operations                                             |
|                                                           | Three                months ended April 1, 2006 and April 2, 2005                (Unaudited)                              |
|                                                           |                                                                                                                      |
|                                                           | Condensed                Consolidated Statements of Cash                Flows                                             |
|                                                           | Three                months ended April 1, 2006 and April 2, 2005                (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              1.       |  Legal              Proceedings                                                                                      |
|                                                           |                                                                                                                      |
| Item                1A.                                        | Risk                Factors                                                                                               |
|                                                           |                                                                                                                      |
| Item                2.                                         | Unregistered                Sales of Equity Securities and Use of                Proceeds                                 |
|                                                           |                                                                                                                      |
|  Item              3.                 |  Defaults              Upon Senior Securities                                                                        |
|                                                           |                                                                                                                      |
|  Item              4.                                     |  Submission              of Matters to a Vote of Security              Holders                                       |
|                                                           |                                                                                                                      |
|  Item              5.                 |  Other              Information                                                                                      |
|                                                           |                                                                                                                      |
| Item                6.                                         | Exhibits                                                                                                                  |
|                                                           |                                                                                                                      |
| Signatures                                                     |
|                                                           |                                                                                                                      |
| Exhibit                Index                                   |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**Analysts      International Corporation**

**Condensed      Consolidated Balance Sheets**

|                                                                     |   |                        |    |                            |   |
|--------------------------------------------------------------------------|--------|-----------------------------|---------|---------------------------------|--------|
|                                                                     |   | **April                1,** |    | **December                31,** |   |
| ***(In                thousands)***                                      |   | **2006**                    |    | **2005**                        |   |
|                                                                     |   | ***(Unaudited)***           |    |                            |   |
|                                                                     |   |                        |    |                            |   |
| **ASSETS**                                                               |   |                        |    |                            |   |
| Current                assets:                                           |   |                        |    |                            |   |
| Cash                and Cash Equivalents                                 |   | $                           | 137     |                            | $      | 64 |   |
| Accounts                receivable, less allowance for doubtful accounts |   |                        | 70,327  |                            |   | 66,968 |   |
| Prepaid                expenses and other current assets                 |   |                        | 3,179   |                            |   | 2,383 |   |
| Total                current assets                                      |   |                        | 73,643  |                            |   | 69,415 |   |
|                                                                     |   |                        |    |                            |   |   |   |
| Property                and equipment, net                               |   |                        | 3,771   |                            |   | 4,056 |   |
| Intangible                assets                                         |   |                        | 12,045  |                            |   | 12,298 |   |
| Goodwill                                                                 |   |                        | 11,799  |                            |   | 11,799 |   |
| Other                assets                                              |   |                        | 4,294   |                            |   | 4,436 |   |
|                                                                     |   | $                           | 105,552 |                            | $      | 102,004 |   |
|                                                                     |   |                        |    |                            |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS' EQUITY**                  |   |                        |    |                            |   |   |   |
| Current                liabilities:                                      |   |                        |    |                            |   |   |   |
| Accounts                payable                                          |   | $                           | 26,331  |                            | $      | 24,581 |   |
| Salaries                and vacations                                    |   |                        | 5,133   |                            |   | 8,260 |   |
| Line                of credit                                            |   |                        | 10,492  |                            |   | 5,000 |   |
| Deferred                revenue                                          |   |                        | 1,464   |                            |   | 1,645 |   |
| Restructuring                accrual                                     |   |                        | 875     |                            |   | 971 |   |
| Health                care reserves and other                            |   |                        | 1,925   |                            |   | 2,242 |   |
| Deferred                compensation                                     |   |                        | 234     |                            |   | 534 |   |
| Total                current liabilities                                 |   |                        | 46,454  |                            |   | 43,233 |   |
|                                                                     |   |                        |    |                            |   |   |   |
| Non-current                liabilities:                                  |   |                        |    |                            |   |   |   |
| Deferred                compensation                                     |   |                        | 1,996   |                            |   | 1,878 |   |
| Restructuring                accrual                                     |   |                        | 408     |                            |   | 581 |   |
|                                                                     |   |                        |    |                            |   |   |   |
| Shareholders'                equity                                      |   |                        | 56,694  |                            |   | 56,312 |   |
|                                                                     |   | $                           | 105,552 |                            | $      | 102,004 |   |

----

**Analysts      International      Corporation**

**Condensed      Consolidated Statements of Operations**

*(Unaudited)*

|                                                                   |   | **Three                Months Ended** |   |
|------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                   |   | **April                1,**           |   | **April                2,** |   |
| ***(In                thousands except per share amounts)***           |   | **2006**                              |   | **2005** |   |
|                                                                   |   |                                  |   |   |   |
| Revenue:                                                               |   |                                  |   |   |   |
| Professional                services provided directly                 |   | $                                     | 65,459 |   | $ | 66,050 |   |
| Professional                services provided through subsuppliers     |   |                                  | 14,077 |   |   | 7,597 |   |
| Product                sales                                           |   |                                  | 7,305  |   |   | 5,452 |   |
| Total                revenue                                           |   |                                  | 86,841 |   |   | 79,099 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Expenses:                                                              |   |                                  |   |   |   |   |   |
| Salaries,                contracted services and direct charges        |   |                                  | 65,196 |   |   | 59,067 |   |
| Cost                of product sales                                   |   |                                  | 6,444  |   |   | 5,107 |   |
| Selling,                administrative and other operating costs       |   |                                  | 14,492 |   |   | 15,454 |   |
| Amortization                of intangible assets                       |   |                                  | 253    |   |   | 193 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Operating                income (loss)                                 |   |                                  | 456    |   |   | (722 | ) |
| Non-operating                income                                    |   |                                  | 4      |   |   | 21 |   |
| Interest                expense                                        |   |                                  | (193   | ) |   | (5 | ) |
|                                                                   |   |                                  |   |   |   |   |   |
| Income                (loss) before income taxes                       |   |                                  | 267    |   |   | (706 | ) |
| Income                tax expense                                      |   |                                  | 13     |   |   | -- |   |
| Net                income (loss)                                       |   | $                                     | 254    |   | $ | (706 | ) |
|                                                                   |   |                                  |   |   |   |   |   |
| Per                common share:                                       |   |                                  |   |   |   |   |   |
| Basic                income (loss)                                     |   | $                                     | .01    |   | $ | (.03 | ) |
| Diluted                income (loss)                                   |   | $                                     | .01    |   | $ | (.03 | ) |
|                                                                   |   |                                  |   |   |   |   |   |
| Average                common shares outstanding                       |   |                                  | 24,611 |   |   | 24,316 |   |
| Average                common and common equivalent shares outstanding |   |                                  | 25,086 |   |   | 24,316 |   |

----

**Analysts      International Corporation**

**Condensed      Consolidated Statements of Cash Flows**

*(Unaudited)*

|                                                                |   | **Three                Months Ended** |   |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                |   | **April                1,**           |   | **April                2,** |   |
| ***(In                thousands)***                                 |   | **2006**                              |   | **2005** |   |
|                                                                |   |                                  |   |   |   |
| Net                cash used in operating activities                |   | $                                     | (5,093 | ) | $ | (3,798 | ) |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                flows from investing activities:                |   |                                  |   |   |   |   |   |
| Property                and equipment additions                     |   |                                  | (326   | ) |   | (1,171 | ) |
| Payments                for acquisitions, net of cash acquired      |   |                                  | --     |   |   | (2,018 | ) |
| Net                cash used in investing activities                |   |                                  | (326   | ) |   | (3,189 | ) |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                flows from financing activities:                |   |                                  |   |   |   |   |   |
| Net                change in line of credit                         |   |                                  | 5,492  |   |   | -- |   |
| Proceeds                from exercise of stock options              |   |                                  | --     |   |   | 11 |   |
| Net                cash provided by financing activities            |   |                                  | 5,492  |   |   | 11 |   |
|                                                                |   |                                  |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents |   |                                  | 73     |   |   | (6,976 | ) |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period     |   |                                  | 64     |   |   | 7,889 |   |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                and cash equivalents at end of period           |   | $                                     | 137    |   | $ | 913 |   |
|                                                                |   |                                  |   |   |   |   |   |
| **Non-cash                activities:**                             |   |                                  |   |   |   |   |   |
| Value                of common stock issued for acquisitions        |   | $                                     | --     |   | $ | 400 |   |
| Value                of common stock issued for stock awards        |   | $                                     | 20     |   | $ | 28 |   |

----

**Analysts      International Corporation**

**Notes      to Condensed Consolidated Financial Statements**

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

*    Goodwill      and      Intangible Assets*

|                                            |   | **April                1, 2006** |   | **December                31, 2005** |   |
|-------------------------------------------------|--------|----------------------------------|--------|--------------------------------------|--------|
|   ***(In                thousands)*** |   | **Gross****Carrying****Amount**  |   | **Accumulated****Amortization**      |   | **Other                Intangibles,****Net** |   | **Gross****Carrying****Amount** |   | **Accumulated****Amortization** |   | **Other                Intangibles,****Net** |   |
|                                            |   |                             |   |                                 |   |   |   |   |   |   |   |   |   |
| Customer                list                    |   | $                                | 15,075 |                                 | $      | (4,617 | ) | $ | 10,458 |   | $ | 15,075 |   | $ | (4,364 | ) | $ | 10,711 |   |
| Tradename                                       |   |                             | 1,720  |                                 |   | (133 | ) |   | 1,587 |   |   | 1,720 |   |   | (133 | ) |   | 1,587 |   |
|                                            |   | $                                | 16,795 |                                 | $      | (4,750 | )  | $ | 12,045 |   | $ | 16,795 |   | $ | (4,497 | ) | $ | 12,298 |   |

----

*Stock      Option Plans*

*Accounting      for Stock Issued to *

**;      **

| a)   | Compensation                expense for all stock-based compensation awards granted prior to                December                31, 2005, which were not fully vested as of December 31, 2005, based                on                the grant date fair value estimated in accordance with the original                provisions of SFAS No. 123, *Accounting                for Stock-Based Compensation;*                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Compensation                expense for all stock-based compensation awards granted subsequent                to                December 31, 2005, based on the grant-date fair value estimated in                accordance with the provisions of SFAS No. 123R. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*in thousands*

| Net                  (loss) income, as reported                                                                                |   | $      | (706   | )      |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Deduct:                  Stock-based compensation expense determined under fairValue                  method for all awards(1) |   |   | (142   | )      |
|                                                                                                                           |   |   |   |   |
| Net                  earnings, pro forma                                                                                       |   | $      | (848   | )      |
|                                                                                                                           |   |   |   |   |
| Earnings                  per share:                                                                                           |   |   |   |   |
| Basic                  - as reported                                                                                           |   | $      | (.03   | )      |
| Basic                  - pro forma                                                                                             |   | $      | (.03   | )      |
|                                                                                                                           |   |   |   |   |
| Diluted                  - as reported                                                                                         |   | $      | (.03   | )      |
| Diluted                  - pro forma                                                                                           |   | $      | (.03   | )      |

|                                            |   |      **Options** |      |  **Weighted****Average****Exercise****Price****Per                Share** |   | **Weighted****Average****Remaining****Contractual****Term****(in                years)** |   |    **Aggregate****Intrinsic****Value** |   |
|-------------------------------------------------|--------|-------------------------------------------|-----------|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                            |   |                                      |      |                                                                           |   |                                                                                     |   |                                                  |   |
| Outstanding                on December 31, 2005 |   |                                      | 2,348,781 |                                                                           | $      | 6.36                                                                                     |   |                                                  | 6.38   |   |  $ | 25,250 |   |
| Granted                                         |   |                                      | 164,000   |                                                                           |   | 2.44                                                                                     |   |                                                  |   |   |   |   |   |
| Exercised                                       |   |                                      | 00        |                                                                           |   | 00                                                                                       |   |                                                  |   |   |   |   |   |
| Forfeited/Canceled                              |   |                                      | 13,350    |                                                                           |   | 4.24                                                                                     |   |                                                  |   |   |   |   |   |
|                                            |   |                                      |      |                                                                           |   |                                                                                     |   |                                                  |   |   |   |   |   |
| Outstanding                on April 1, 2006     |   |                                      | 2,499,431 |                                                                           | $      | 6.12                                                                                     |   |                                                  | 6.37   |   | $ | 102,040 |   |
| Exercisable                on April 1, 2006     |   |                                      | 1,935,431 |                                                                           | $      | 7.03                                                                                     |   |                                                  | 5.65   |   | $ | 44,680 |   |

----

|                                                                       |   | **The                Period Ended** |                     |
|----------------------------------------------------------------------------|--------|-------------------------------------|--------------------------|
|  **Black-Scholes                Option Valuation Assumptions****(1)** |   | **April                1,****2006** |                     | **April                2,****2005** |   |
|                                                                       |   |                                |                     |   |   |
| Risk-free                interest rate(2)                                  |   |                                | 4.2                - 5.1 | % |   | 3.1                - 4.7 | % |
| Expected                dividend yield                                     |   |                                | 0.0                      | % |   | 0.0 | % |
| Expected                stock price volatility(3)                          |   |                                | 42                - 72   | % |   | 48                - 81 | % |
| Expected                life of stock options (in years)(4)                |   |                                | 6.4                      |   |   | 6.9 |   |

|                                          |    **Shares** | **Weighted****Average****Grant                  Date****Fair                  Value** |
|-----------------------------------------------|------------------------------|---------------------------------------------------------------------------------------|
| Non-vested                  December 31, 2005 | 217,000                      | 3.12                                                                                  |
| Granted                                       | 258.000                      | 2.43                                                                                  |
| Vested                                        | 8000                         | 2.46                                                                                  |
| Forfeited                                     | 0                            | 0                                                                                     |
| Non-vested                  at April 1, 2006  | 467,000                      | 2.75                                                                                  |

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

----

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

|                                                 |   | **Three                Months Ended** |   |
|------------------------------------------------------|--------|---------------------------------------|--------|
| ***(In                thousands)***                  |   | **April                1, 2006**      |   |
|                                                 |   |                                  |   |
| Balance                at beginning of period        |   | $                                     | 56,312 |   |
|                                                 |   |                                  |   |   |
| Issuance                of common stock              |   |                                  | 20     |   |
| Amortization                of deferred compensation |   |                                  | 81     |   |
| FAS                123 R stock option expense        |   |                                  | 27     |   |
| Net                Income                            |   |                                  | 254    |   |
|                                                 |   |                                  |   |   |
| Balance                at end of period              |   | $                                     | 56,694 |   |

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

|                                                                                      |   | **Three                Months Ended** |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|  ***(In                thousands, except per share amounts)***                       |   | **April                1,****2006**   |   | **April                2,****2005** |   |
|                                                                                      |   |                                  |   |   |   |
| Net                income (loss)                                                          |   | $                                     | 254    |   | $ | (706 | ) |
|                                                                                      |   |                                  |   |   |   |   |   |
| Weighted-average                number of common shares outstanding                       |   |                                  | 24,611 |   |   | 24,316 |   |
| Dilutive                effect of employee equity compensation plan awards                |   |                                  | 475    |   |   | -- |   |
| Weighted-average                number of common and common equivalent shares outstanding |   |                                  | 25,086 |   |   | 24,316 |   |
|                                                                                      |   |                                  |   |   |   |   |   |
| Net                income (loss) per share:                                               |   |                                  |   |   |   |   |   |
| Basic                                                                                     |   | $                                     | .01    |   | $ | (.03 | ) |
| Diluted                                                                                   |   | $                                     | .01    |   | $ | (.03 | ) |

**5.**
**Restructuring**

----

|                                        |   | **Workforce** |   | **Office                Closure/** |   |      |   |
|---------------------------------------------|--------|---------------|--------|------------------------------------|--------|-----------|--------|
| ***(In                thousands)***         |   | **Reduction** |   | **Consolidation**                  |   | **Total** |   |
|                                        |   |          |   |                               |   |      |   |
| Balance                at December 31, 2005 |   | $             | 44     |                               | $      | 1,508     |   | $ | 1,552 |   |
| Cash                expenditures            |   |          | (34    | )                                  |   | (244      | )      |   | (278 | ) |
| Non-cash                charges             |   |          | --     |                               |   | 9         |   |   | 9 |   |
| Balance                at April 1, 2006     |   | $             | 10     |                               | $      | 1,273     |   | $ | 1,283 |   |

----

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

*Forward-Looking      Statements*

*Introduction      and Overview of First Quarter 2006 Events*

----

*Market      Conditions and Economics of Our Business*

*Strategy*

| §   | IP                Communications which includes Wireless, IP Telecommunications, Call                Center                and Security Services |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| §   | Storage                Solutions which includes storage product support and VMware                services |
|--------------------|------------------------------------------------------------------------------------------------------------|
| §   | Lawson                Services which includes integration, customization, and administration                of                Lawson Software applications |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §   | Managed                IT Services which includes Application Outsourcing, Help Desk, Hosting,                and Field Engineering services |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

*Other      Factors*

*Overview      of Results of First Quarter 2006 Operations*

----

*Estimates      of Future Operating Results*

*Allowance      for Doubtful Accounts*

*Accrual      of Unreported Medical Claims*

*Revenue      Recognition*

----

*Subsupplier      Revenue*

*Goodwill      and Other Intangible Impairment*

*Deferred      Taxes*

*Restructuring      and other severance related costs*

*Stock-Based      Compensation*

----

**RESULTS      OF OPERATIONS, THREE-MONTH PERIODS ENDED APRIL 1, 2006 VS. APRIL 2,      2005**

|                                                                    | ** ** | **Three                Months Ended** | ** ** | **Three                Months Ended** | ** ** | ** **                             | ** ** | ** **              | ** ** | ** ** | ** ** |
|-------------------------------------------------------------------------|------------|---------------------------------------|------------|---------------------------------------|------------|----------------------------------------|------------|-------------------------|------------|------------|------------|
| ** **                                                              | ** ** | **April                1, 2006**      | ** ** | **April                2, 2005**      | ** ** | **Increase                (Decrease)** | ** ** |
|                                                                    |       |                                  |       | **%                of**               |       |                                   |       | **%                of** |       |            |       | **% ** | ** ** | **As                % of** | ** ** |
| ***(dollars                in thousands)***                             | ** ** | **Amount**                            | ** ** | **Revenue**                           | ** ** | **Amount**                             | ** ** | **Revenue**             | ** ** | **Amount** | ** ** | **Inc                (Dec)** | ** ** | **Revenue** |   |
| Revenue:                                                                |       |                                  |       |                                  |       |                                   |       |                    |       |       |       |   |   |   |   |
| Professional                services provided directly                  |       | $                                     | 65,459     |                                  |       | 75.4                                   | %          | $                       | 66,050     |       |       | 83.5 | % | $ | (591 | ) |   | (.9 | )% |   | (8.1 | )% |
| Professional                services provided through subsuppliers |       |                                  | 14,077     |                                  |       | 16.2                                   |       |                    | 7,597      |       |       | 9.6 |   |   | 6,480 |   |   | 85.3 |   |   | 6.6 |   |
| Product                sales                                            |       |                                  | 7,305      |                                  |       | 8.4                                    |       |                    | 5,452      |       |       | 6.9 |   |   | 1,853 |   |   | 34.0 |   |   | 1.5 |   |
| Total                revenue                                            |       |                                  | 86,841     |                                  |       | 100.00                                 |       |                    | 79,099     |       |       | 100.0 |   |   | 7,742 |   |   | 9.8 |   |   | .0 |   |
| Salaries,                contracted services and direct charges         |       |                                  | 65,196     |                                  |       | 75.1                                   |       |                    | 59,067     |       |       | 74.7 |   |   | 6,129 |   |   | 10.4 |   |   | .4 |   |
| Cost                of product sales                                    |       |                                  | 6,444      |                                  |       | 7.4                                    |       |                    | 5,107      |       |       | 6.5 |   |   | 1,337 |   |   | 26.2 |   |   | .9 |   |
| Selling,                administrative and other operating costs        |       |                                  | 14,492     |                                  |       | 16.7                                   |       |                    | 15,454     |       |       | 19.5 |   |   | (962 | ) |   | (6.2 | ) |   | (2.8 | ) |
| Amortization                of intangible assets                        |       |                                  | 253        |                                  |       | .3                                     |       |                    | 193        |       |       | .2 |   |   | 60 |   |   | 31.1 |   |   | .1 |   |
| Non-operating                income                                     |       |                                  | (4         | )                                     |       | .0                                     |       |                    | (21        | )          |       | (.0 | ) |   | (17 | ) |   | (81.0 | ) |   | .0 |   |
| Interest                expense                                         |       |                                  | 193        |                                  |       | .2                                     |       |                    | 5          |       |       | .0 |   |   | 188 |   |   | 3,760.0 |   |   | .2 |   |
|                                                                    |       |                                  |       |                                  |       |                                   |       |                    |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes                        |       |                                  | 267        |                                  |       | .3                                     |       |                    | (706       | )          |       | (.9 | ) |   | 973 |   |   | 137.82 |   |   | 1.2 |   |
| Income                tax expense                                       |       |                                  | 13         |                                  |       | .0                                     |       |                    | --         |       |       | .0 |   |   | 13 |   |   | -- |   |   | .0 |   |
|                                                                    |       |                                  |       |                                  |       |                                   |       |                    |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                        |       | $                                     | 254        |                                  |       | .3                                     | %          | $                       | (706       | )          |       | (.9 | )% | $ | 960 |   |   | 136.0 | % |   | 1.2 | % |
|                                                                    |       |                                  |       |                                  |       |                                   |       |                    |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Personnel:                                                              |       |                                  |       |                                  |       |                                   |       |                    |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Management                and administrative                            |       |                                  | 409        |                                  |       |                                   |       |                    | 440        |       |       |   |   |   | (31 | ) |   | (7.0 | )% |   |   |   |
| Technical                consultants                                    |       |                                  | 2,378      |                                  |       |                                   |       |                    | 2,387      |       |       |   |   |   | (9 | ) |   | (.4 | ) |   |   |   |

*Revenue*

*Salaries,      Contracted Services and Direct Charges*

----

*Cost      of Product Sales*

*Selling,      Administrative and Other Operating Costs*

*Non-Operating      Income*

*Interest      Expense*

*Income      Taxes*

*Personnel*

----

|                                                   |   |                        |   |                            |   |           |   | **Percentage** |   |
|--------------------------------------------------------|--------|-----------------------------|--------|---------------------------------|--------|----------------|--------|----------------|--------|
|                                                   |   | **April                1,** |   | **December                31,** |   | **Increase**   |   | **Increase**   |   |
| ***(In                thousands except percentages)*** |   | **2006**                    |   | **2005**                        |   | **(Decrease)** |   | **(Decrease)** |   |
|                                                   |   |                        |   |                            |   |           |   |           |   |
| Cash                and Cash Equivalents               |   | $                           | 137    |                            | $      | 64             |   | $              | 73     |   |   | 114.1 | % |
| Accounts                Receivable                     |   |                        | 70,327 |                            |   | 66,968         |   |           | 3,359  |   |   | 5.0 |   |
| Other                Current Assets                    |   |                        | 3,179  |                            |   | 2,383          |   |           | 796    |   |   | 33.4 |   |
| Total                Current Assets                    |   | $                           | 73,643 |                            | $      | 69,415         |   | $              | 4,228  |   |   | 6.1 | % |
|                                                   |   |                        |   |                            |   |           |   |           |   |   |   |   |   |
| Accounts                Payable                        |   | $                           | 26,331 |                            | $      | 24,581         |   | $              | 1,750  |   |   | 7.1 | % |
| Salaries                and Vacations                  |   |                        | 5,133  |                            |   | 8,260          |   |           | (3,127 | ) |   | (37.9 | ) |
| Line                of Credit                          |   |                        | 10,492 |                            |   | 5,000          |   |           | 5,492  |   |   | 109.8 |   |
| Restructuring                Accruals Current          |   |                        | 875    |                            |   | 971            |   |           | (96    | ) |   | (9.9 | ) |
| Other                Current Liabilities               |   |                        | 3,623  |                            |   | 4,421          |   |           | (798   | ) |   | (18.1 | ) |
| Total                Current Liabilities               |   | $                           | 46,454 |                            | $      | 43,233         |   | $              | 3,221  |   |   | 7.5 | % |
|                                                   |   |                        |   |                            |   |           |   |           |   |   |   |   |   |
| Working                Capital                         |   | $                           | 27,189 |                            | $      | 26,182         |   | $              | 1,007  |   |   | 3.8 | % |
| Current                Ratio                           |   |                        | 1.59   |                            |   | 1.61           |   |           | (.02   | ) |   | (1.2 | ) |
|                                                   |   |                        |   |                            |   |           |   |           |   |   |   |   |   |
| Total                Shareholders’ Equity        |   | $                           | 56,694 |                            | $      | 56,312         |   | $              | 382    |   |   | .7 | % |

*Cash      Requirements*

*Sources      and Uses of Cash/Credit Facility*

----

|  ***(in                thousands)*** |   |  **1                Year** |   |  **2-3                Years** |   |  **4-5                Years** |   | **Over                5****Years** |   |  **Total** |   |
|-------------------------------------------|--------|---------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|-----------------|--------|
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |
| Line                of Credit             |   | $                               | --     |                               | $      | --                                 |   | $                                  | 10,492 |            | $      | -- |   | $ | 10,492 |   |
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |   |   |   |   |   |
| Operating                Leases           |   |                            | 4,672  |                               |   | 6,423                              |   |                               | 3,295  |            |   | 1,710 |   |   | 16,100 |   |
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |   |   |   |   |   |
| Deferred                Compensation      |   |                            | 177    |                               |   | 906                                |   |                               | 177    |            |   | 875 |   |   | 2,135 |   |
|                                      |   |                            |   |                               |   |                               |   |                               |   |            |   |   |   |   |   |   |
| Total                                     |   | $                               | 4,849  |                               | $      | 7,329                              |   | $                                  | 13,964 |            | $      | 2,585 |   | $ | 28,727 |   |

* *

----

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

**Item      4. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A.** **Risk      Factors**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3.  Defaults Upon Senior      Securities**

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

**Item      5.  Other Information**

**Item      6. Exhibits**

| ^                    Exhibit 10.1 |   | First                  Amendment to Lease Agreement dated as of May 15, 2002. (Exhibit                  10.1 to                  Current Report on Form 8-K filed March 24, 2006. Commission File                  No.                  0-4090, incorporated by reference.)                                                                                         |
|---------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *^                  Exhibit 10.2            |   | Eighth                  Amendment to Credit Agreement dated as of January 20, 2006. (Exhibit                  99.2                  to Current Report on Form 8-K filed January 26, 2006, Commission                  File No.                  0-4090 incorporated by reference.)                                                                                  |
| *^                  Exhibit 10.3            |   | Restricted                  Stock Agreement between Analysts International Corporation and                  Jeffrey P.                  Baker dated January 3, 2006. (Exhibit 99.1 to Current Report on                  Form 8-K                  filed January 9, 2006, Commission File No. 0-4090, incorporated                  by                  reference.) |
| *^                  Exhibit 10.4            |   | Incentive                  Stock Option Agreement between Analysts International Corporation                  and                  Jeffrey P. Baker dated January 3, 2006. (Exhibit 99.2 to Current                  Report on                  From 8-K filed January 9, 2006, Commission File No. 0-4090, incorporated                  by reference.)            |
| *+                  Exhibit 10.5            |   | Summary                  of Terms and Conditions of 2006 Management Incentive Compensation                  Plan.                  (Previously filed in text of Current Report on Form 8-K filed January                  5,                  2006, Commission File No. 0-4090, included herein.)                                                                   |
| +                    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.                                                                                                                                                          |

----

| *  |   | Denotes                      a management contract or compensatory plan or arrangement required                      to be                      filed as an exhibit to this quarterly report pursuant to Item                      6 of Form                      10-Q. |
|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ^  |   | Denotes                      an exhibit previously filed with the Securities and Exchange                      Commission                      and incorporated herein by reference.                                                                                    |
| +  |   | Filed                      herewith                                                                                                                                                                                                                                     |
| ++ |   | Furnished                      herewith                                                                                                                                                                                                                                 |

----

**SIGNATURES**

|                              | ANALYSTS                INTERNATIONAL CORPORATION |
|-----------------------------------|---------------------------------------------------|
|                              | (Registrant)                                      |
|                              |                                              |   |
|                              |                                              |   |
|                              |                                              |   |
| Date:                May 10, 2006 | By:                                               | /s/                Jeffrey P. Baker |
|                              |                                              | Jeffrey                P. Baker |
|                              |                                              | Chief                Executive Officer |
|                              |                                              |   |
|                              |                                              |   |
| Date:                May 10, 2006 | By:                                               | /s/                David J. Steichen |
|                              |                                              | David                J. Steichen |
|                              |                                              | Chief                Financial Officer |
|                              |                                              | (Principal                Financial and Accounting Officer) |

----

**EXHIBIT      INDEX**

|  Exhibit              10.5         |   | Summary              of Terms and Conditions of 2006 Management Incentive Compensation              Plan                                                                                           |
|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                            |   |                                                                                                                                                                                               |
| 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. |

----